Coal India is hoping to increase fuel stocks at power plants to 22 days, which requires 36 million metric tons (mt) to be stored at generating stations, a company executive said.

The company has managed to raise average daily production from 1.27 million metric tons (mt) in October to 1.8 million mt now. This increased stocks at power plants by 64% since October to 28 million mt, enough for 17 days. It is almost double last year’s stock position, which stood at 14 million mt, barely usable for nine days.

“We hope to touch Central Electricity Authority’s (CEA) mandated 22 day’s stocks at power plants by January as production at Coal India is on the rise. Stocks at power plants will have to be increased by five days to touch the CEA’s number. It would require a build-up of additional 8 mt of stock at the plants,” a Coal India executive said. “At present, stocks at mine-mouth in CIL is around 22 mt, more than enough for increasing stocks to the necessary level. Combined stock at CIL and power plants stands at around 50 mt this week.”

According to the executive, a 28% month-on-month increase in Coal India’s October production and a 27% rise in month-on-month November production has enabled the company to increase stocks at power plants.

In an effort to make sure the sector can lift adequate coal, the company has recently decided to offer limited credit facilities by doing away with the advance payment norm.