NTPC weighs 10 MT commercial coal purchase as power demand rises
By Staff Report October 7, 2026 11:54 am IST
Power producer plans to source around 10 million tonnes in the second half of FY27 as coal inventories remain under pressure and power demand rises.
NTPC Limited is planning to procure around 10 million tonnes of coal from commercial mines during the second half of FY27 to strengthen fuel supplies for its power plants. The move comes as coal inventories remain low amid higher electricity demand and increased generation.
The proposed procurement would mark the second year in which NTPC sources coal from commercial mines. NTPC had procured around 11 million tonnes from commercial mines in FY25, while most of its coal requirement continued to be met through long-term fuel supply arrangements with state-run miners.
NTPC expects its total coal requirement to reach around 300 million tonnes in FY27, about 11% higher than the previous financial year. The increase is linked to higher power generation, with NTPC’s plants operating at a plant load factor of around 76%.
NTPC’s coal stocks have come under pressure in recent months. The group had around 5.2 million tonnes of coal stock as of October 5, compared with about 18 million tonnes in April, leaving stocks sufficient for roughly five to six days of consumption.
The commercial coal is expected to be sourced from mines in states including Odisha and West Bengal. NTPC has also held discussions with NLC as part of its efforts to diversify coal supplies.
NTPC plans to make commercial coal procurement a regular part of its fuel mix, with annual sourcing from commercial miners expected to remain around 10–15 million tonnes going forward. The move would supplement supplies from Coal India, Singareni Collieries Company and NTPC’s captive mines.
NTPC is also increasing production from its captive coal mines. The group has nine coal blocks with a combined peak production capacity of 91.6 million tonnes per annum, of which six were operational, according to NTPC.
The wider coal supply situation has also remained tight. Government data showed that 81 of 191 domestic-coal-based power plants were facing critical coal stock levels as of October 5. Coal India has meanwhile increased supplies to the power sector, with September dispatches rising 10.63% year-on-year to 48.90 million tonnes.
