India Considers Mandatory Coal Blending as Power Plant Stocks Crumble

Key Facts

The Indian government is considering a mandate for power plants to blend up to 5% imported coal with domestic supplies due to crumbling stocks. Reuters reported that the potential mandate aims to address domestic logistics challenges and critically low inventory levels at numerous facilities to ensure national energy security.

As many as 74 coal-fired power plants held fewer than three days of coal stocks as of the September 20, 2026 weekend, up from 60 plants the previous week. Government sources indicate that the share of operational coal plants running on critically low inventory levels has recently soared to nearly 40%.