India Targets Raising Power Plant Coal Stocks to 55 Million Tons by March 2027

Key Facts

India’s coal, power and railways ministries are targeting an increase in coal stocks at power plants from about 18 million tons to at least 55 million tons by the end of the fiscal year in March 2027, according to a Bloomberg report citing people familiar with the matter. The target applies to plant inventories, not total coal in the national supply chain. Reaching the target would raise stocks to more than three times the reported current level. The plan comes as inventories approach a 5-year low, covering only about 6 days of supplies. The report said the buildup is intended to limit the risk of power shortages ahead of a summer demand surge.

The Indian administration typically wants power plants to hold enough coal for about 3 weeks of supplies, with requirements varying by plant location. But the report said nearly half of plants had critically low stocks of less than a quarter of the required amount. The shortfall leaves generators more exposed to any disruption in supplies or transport, while coal remains essential to meeting grid needs. Inventories gradually improved over the preceding two weeks as temperatures fell, according to the report. But that improvement followed months of power outages and higher energy costs caused by the coal crisis.

The report attributed rising pressure on the power grid to weak hydropower output and heat-related demand. At the same time, prioritizing power plants in Coal India’s deliveries led to fuel shortages for factories and other coal users. The company’s shipments reached a record in October, surpassing the previous high set in March, while its production also hit an all-time high for October. More than four-fifths of shipments went to power plants supplying the grid. That share shows the priority given to securing power generation, while supplies to other sectors remain under pressure.

Implementing the plan also depends on expanding the capacity to transport coal to plants. Indian Railways provided 20% more wagons in October than in the same month a year earlier, while the power ministry wants to raise the number by a further 7% by March. A government report said the railways moved an average of 430 coal-laden trains a day to thermal power plants in the first half of fiscal 2026–2027, up 7.1% year on year. The momentum continued in September, when daily shipments rose 14% compared with September 2025. The government attributed increased demand for coal-fired generation to higher industrial output and a shortage of rainfall in some parts of the country.

The plan comes as September data showed India’s industrial output grew 6.7% year on year, according to the statistics ministry, with manufacturing rising 7.6% and electricity and gas supply increasing 11.2%. The figure was announced on 28 October, the date the data was published, not the period measured by the growth rate. These indicators place industrial and energy performance in the context of coal demand, but do not establish that slower industrial growth was a direct reason for setting the stock target. Bloomberg also reported that authorities are seeking to avert power shortages ahead of elections scheduled in key states in the first half of 2027, including Uttar Pradesh. This puts the stockpile buildup within preparations for the summer demand season and upcoming political contests.

Coal ministry data show that daily withdrawals from plant stocks slowed from 0.243 million tons a day in September to 0.116 million tons a day in October, a decline of more than half. The ministry said the situation is stabilizing, but added that stock rebuilding has not yet begun. This reflects a slower pace of reserve depletion without indicating that the targeted increase has been achieved. India’s coal-fired power plants held 53.49 million tons on 10 March 2025, compared with 44.51 million tons on the corresponding day in 2024, according to the coal ministry. That comparison is based on an earlier date, while the current plan’s target remains 55 million tons in plant stocks by March 2027.