India's coal plants with critically low stocks rise to 96
Key Facts
The number of coal-fired power plants in India with critically low stocks rose to 96 on October 19, according to Reuters, with fuel reserves sufficient for less than 3 days of operation. The category included 60 plants in mid-September, before the number operating with low inventories expanded in the following period. The total fleet covered by the agency comprises 191 plants, putting about half of coal-fired power plants in the critical-stock category. Alongside the increase in plants in this category, total coal stocks at power plants have fallen about 5% since the start of October. The decline in fuel reserves follows a 13.3% year-on-year increase in coal-fired power generation in September, according to Reuters.
On the supply side, India's coal ministry reported an increase in average volumes supplied to the power sector during the period covered by its October 2026 statement. These supplies averaged 2.49 million tonnes a day, compared with an average of 2.21 million tonnes a day in September 2026, according to the ministry. The October figure covers the period up to the date of the statement, while the comparison is with average daily supplies in the previous month. The ministry said stocks at power plants relying on domestic coal stood at 18.205 million tonnes on October 10, 2026. This volume represents fuel held at plants that rely on domestically produced coal, as part of the ministry's monitoring of power-sector stocks and supplies.
The coal ministry described the classification of plants as having critically low stocks as an "early warning measure", clarifying the nature of the designation used to monitor fuel reserves. A plant's inclusion in this category is tied to the ministry's inventory criteria, rather than simply an announcement that generation has stopped. The ministry stressed that reaching the critical stock level does not in itself indicate that a plant has run out of coal. Nor does the classification alone mean that a plant is close to shutting down because of a shortage of operating fuel. The government response includes reallocating coal according to need to plants most exposed to inventory shortages, according to the ministry's announcement on measures for plants facing pressure.
Outside the power sector, the International Energy Agency identified output growth in several Indian industries as a factor supporting industrial coal demand. These include pig iron production, which the agency listed among activities supporting coal consumption in the country. It also cited growth in direct reduced iron and cement production among the factors underpinning Indian industrial demand for the fuel. On domestic production, the agency said Coal India produces about three-quarters of India's total national coal output. India's coal market thus combines power-generation needs with demand from the iron and cement industries, alongside a substantial contribution from Coal India to national output, according to the agency.
In the solar sector, the Associated Press reported that India curtailed nearly 11 terawatt-hours of generation over the 15 months preceding its report, citing government data and research by Ember. On coal trade, the International Energy Agency expects India's thermal coal imports to decline in 2026. The agency estimated expected imports at about 160 million tonnes, compared with 167 million tonnes in 2025, in its annual trade comparison. This estimate concerns imported thermal coal, while the ministry's monitoring of domestic inventories covers plants relying on fuel produced within India. The decline in imports in 2026 remains an International Energy Agency forecast, compared with the comparison-year volume it put at 167 million tonnes.
On rebuilding stocks ahead of upcoming periods of seasonal demand, the coal ministry linked supply stability to maintaining the pace of freight train loading. The ministry put this pace at 465 to 475 freight trains a day, supporting coal transport and the replenishment of plant reserves in the coming period. It said continued loading at this level supports supply stability, alongside its role in rebuilding stocks ahead of those periods. Monitoring freight movements is part of the government response, which includes directing coal according to the needs of plants most exposed to declining stocks. For 2026, the International Energy Agency puts expected thermal coal imports at about 160 million tonnes, while the announced government measures focus on distributing supplies and rebuilding inventories.