Coal stocks fall sharply at power plants as India faces supply pressure
By Staff Report October 8, 2026 12:48 pm IST
Around 69 power stations had four days or less of coal reserves as of October 4, raising concerns over power availability amid strong demand and supply disruptions.
Coal inventories at several Indian power plants have fallen to critically low levels, increasing pressure on the power sector as electricity demand remains high. Around 69 power stations had coal stocks for four days or less as of October 4, according to data cited in recent reports.
The affected plants accounted for more than 40% of India’s coal-fired power capacity. The current stock position was the lowest recorded since December 2021, when the power sector faced a major fuel shortage.
Higher electricity demand has increased dependence on coal-based generation. September recorded India’s highest power shortage in more than three years, while coal-fired generation increased 13.3% year-on-year during the month.
Coal supply has also been affected by heavy rainfall in mining regions, which disrupted mining operations and coal movement. Rail transportation constraints have further slowed the replenishment of stocks at power plants.
The pressure has been particularly significant at plants located away from coal mines. Nearly 90% of power stations with low inventories are located away from coal-producing regions, increasing their dependence on reliable rail-based coal transportation.
The situation has also been affected by weaker hydropower generation. Hydropower output fell around 20% year-on-year in September, reducing the availability of an additional source of electricity at a time when demand remained elevated.
Around 41 GW of power generation capacity was offline, while nearly 47% of coal-based power plants were reported to have critically low fuel levels. A plant is classified as critical when its coal inventory falls below 25% of the normative requirement.
The Centre has taken measures to increase power availability. The Ministry of Power directed 112 captive coal-based power plants to operate at maximum available capacity from October 1 to December 31 to help meet higher electricity demand.
Coal India has also increased coal supplies to the power sector. Its dispatches to power plants rose 10.63% year-on-year to 48.90 million tonnes in September.
The immediate pressure on coal stocks is linked to a combination of high power demand, weather-related disruptions, mining constraints and limited rail capacity. Rebuilding inventories before the next summer will remain important as power demand is expected to rise further during periods of high temperatures.
