India steps up coal supplies to power plants amid rising demand and falling stocks

New Delhi: The government is working to shore up coal stocks at power plants by increasing supplies from captive mines and stepping up loading by select Coal India subsidiaries as it seeks to address critical stock positions at several generating stations amid seasonally lower production and rising power demand, people aware of the development said.

Coal companies, particularly Northern Coalfields, Central Coalfields and South Eastern Coalfields, have been asked to improve coal loading as part of the effort to strengthen supplies to the power sector.

Also Read: Coal India bets ₹50,000 crore on life beyond coal; goes big on gasification, critical minerals


The move follows a key meeting on Wednesday to review the coal stock position at power plants, the people said.

India's largest coal producer Coal India's total supplies during the first five months of FY27 was 322.90 million tonnes, up 6.7% on year.

However, power demand has remained higher year on year, particularly amid a deficit monsoon, leading to depletion of the fuel stock at power plants.

Mails sent to the power and coal ministries remained unanswered till the time of filing this report.

Overall, coal stocks at thermal power plants stood at around 28.6 million tonnes as on September 1, even as some units face tighter inventories. Of this, 25.5 million tonnes were at domestic coal-based plants.

Also Read: Coal India’s supplies rise 5.5% in August despite output dip

India's opening stock at the beginning of the financial year at power plants was at 59.3 million tonnes.

Power consumption growth has hovered above 10% May onwards, led by cooling, irrigation and economic activity, amid a deficit monsoon. The second quarter usually sees a decline sequentially in coal supplies and stocks.

The government is also holding regular meetings involving the power, coal and railway ministries to coordinate production, loading and movement of coal.