Coal India has reached a situation when the production cannot be optimised due to inability to stock coal further which has already reached 40 mt due to sluggish demand.

Eighty percent of Coal India's coal sales is to power plants and dumping further coal at their stock yards is getting difficult due to security reasons.

"Dumping more coal to power plants is getting difficult as average stock to them has gone up to 25 days against 11 days last year. This is neither economical and increases risk of fire," the official said.
Combined stocks of thermal coal at 101 power plants in the country has risen to a new record of 34.2 mt.

Lower demand from state generation companies and continuing easing of international coal price has multiplied the problem.

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