India's Coal Demand Set to Jump 4.2% as Plant Stocks Hit Critical Lows
Nearly 40% of India's operating coal-fired power plants are running on critically low coal inventories, with 74 plants holding less than three days' worth of fuel as of this weekend, up from 60 the previous week, government data showed. The shortfalls reflect transport and weather-related disruptions rather than an absolute supply shortage, even as the International Energy Agency forecasts a 4.2% rise in India's coal demand this year to 1.353 billion tonnes.
Why It Matters
The situation highlights strains on India's power system logistics at a moment of rising demand: low on-site coal stocks increase vulnerability to further transport or weather shocks, while projected higher coal consumption underscores growing pressure on supply chains and port/rail movement. These dynamics can affect electricity reliability and energy-market flows nationally.
Key Facts
- Share of operational coal plants with critically low inventory: Nearly 40%
- Number of plants with under three days of coal: 74 (this weekend)
- Number of such plants a week earlier: 60
- Critical stock threshold cited: Below 25% of normative requirement
- IEA projected change in India coal demand: 4.2% increase in 2026 to 1.353 billion tonnes (Coal Mid-Year Update 2026)
Indian government data cited by Reuters and reported by OilPrice.com shows a sharp rise in the share of coal-fired power plants operating with critically low fuel inventories. As of this weekend 74 plants had less than three days’ worth of coal, up from 60 a week earlier, representing nearly 40% of operational coal plants. Many facilities have seen stock levels fall below the 25% normative threshold used to flag critical status. Authorities and analysts attribute the drawdown primarily to domestic transportation bottlenecks and weather disruptions rather than an absolute shortage of coal. Monsoon rains in August hampered movement of coal from producing states to power stations, and officials said corrective supply measures and close monitoring of critical plants are underway to ease the situation. Demand-side factors have increased pressure on inventories. A strong El Niño has lifted electricity consumption, while broader energy-market tensions — including oil and gas disruptions in the Strait of Hormuz — have added to fuel-market strain. The International Energy Agency reported that India’s total coal demand is expected to rise 4.2% this year to 1.353 billion tonnes, reversing a modest decline seen the previous year. Despite low on-site stocks at a substantial share of plants, authorities maintain that coal availability at a national level remains adequate. The Ministry of Coal earlier said domestic producers were boosting supplies to power stations as inventories fell to critically low levels, and the ministry said it was closely monitoring critical thermal plants and implementing measures to restore stocks.
Keep Reading
Norway's Arctic Oil Pitch Falls Flat in Brussels
