Indian coal companies are ramping up supply to coal-fired power plants after stockpiles at dozens of facilities dropped to critically low levels, according to India's Ministry of Coal announcement on Monday, September 7, 2026. More than 50 coal-fired power plants in India, where coal remains the single largest electricity generator, have seen their coal stocks fall below the critically low threshold of 25 percent of normative requirements. The number of plants operating at critical stockpile levels rose to 53 as of September 5, compared to 45 on August 26, according to data from the Central Electricity Authority (CEA).
The decline in coal reserves coincides with rising electricity demand driven by stronger-than-usual temperatures attributed to El Niño weather patterns. Supply disruptions caused by monsoon rains have exacerbated the situation, creating a supply-demand imbalance at power generation facilities across the nation. In response to the crisis, coal shipments via rail to power plants have increased significantly in recent days.
The Ministry of Coal credited state-owned Coal India Limited (CIL) and its subsidiaries, along with SCCL and captive mine operators, for ramping up coal supply to the power sector. The ministry noted that the number of critical thermal plants is being closely monitored, with corrective coal supply measures already implemented to stabilize stockpile levels. The ministry and Coal India Limited have committed to sustaining the improved trend in rail loading to the power sector to meet electricity requirements.
Between August 1 and 23, coal stocks at India's power plants declined by 15.5 percent as coal receipt rates lagged behind consumption levels, according to commodity consultancy BigMint. The monsoon season, which typically supports India's climate by bringing rainfall, has been disrupted by El Niño, resulting in hotter-than-usual temperatures that have driven up power demand across the country. This combination of weather factors and transportation constraints has created one of the more challenging supply situations for India's coal-dependent electricity sector in recent months.
Source: oilprice.com