India Weighs Mandatory Imported Coal Blending as Plant Stocks Crumble
India is considering a requirement for power stations to mix imported coal into their fuel supplies after coal inventories at many thermal plants dropped sharply because of logistics problems and higher demand, government sources told Reuters. The proposal under discussion would oblige plants to blend up to 5% imported coal with domestic coal and would be the first such mandatory blending since 2024.
Why It Matters
The measure would mark a partial reversal of India's recent emphasis on boosting domestic coal output and cutting import exposure, and it comes as a rising share of coal-fired plants face critically low inventories amid stronger electricity demand and transport disruptions. Any policy change could affect domestic supply decisions and the thermal power sector's vulnerability to transport and weather shocks.
Key Facts
- proposed blending level: up to 5% imported coal
- last mandatory blending: 2024
- share of plants on critically low coal: nearly 40% of operational coal plants
- plants with <3 days of coal (Sep 19-20 weekend): 74 plants
- plants with <3 days of coal (previous week): 60 plants
Indian officials are discussing a plan to make imported coal blending mandatory at thermal power plants after inventories at many facilities eroded in recent months, government sources with direct knowledge of the talks told Reuters. Under the proposal now in early-stage discussions, power stations would be required to include up to 5% imported coal alongside domestically mined coal.
For the past two years India has stressed using domestic coal to raise local production and reduce reliance on imports. But a combination of stronger electricity demand, supply-chain and transport bottlenecks, and weather-related disruptions has drained stocks at numerous plants faster than in previous years, prompting officials to consider adjustments to fuel sourcing rules.
Recent data cited by the sources show the proportion of coal-fired plants running on critically low inventories has jumped to almost 40% of operational coal units. Authorities reported 74 thermal plants had less than three days of coal remaining during the September 19-20 weekend, up from 60 in the prior week. Despite these low stocks, officials said India is not facing an acute national supply shortfall.
External analysis referenced in coverage also points to rising demand pressure: the International Energy Agency in its Coal Mid-Year Update 2026 forecast a 4.2% increase in India’s total coal demand to 1.353 billion tonnes for the year, reversing a slight dip the previous year. Reuters and Oilprice.com reported the deliberations and surrounding supply figures; the discussions on making imported-coal blending mandatory remain at an early stage and no formal decision has been announced.