The Central Electricity Authority reports that the number of plants with depleted reserves jumped significantly over the past week, rising from 60 to 74. Officials attribute these shortages primarily to domestic logistics failures rather than a lack of raw material. Transport routes from coal-rich regions have been hampered by heavy seasonal rains, preventing fuel from reaching the plants where electricity consumption is peaking.
India Faces Coal Supply Squeeze as Power Demand Surges
Nearly 40% of India’s coal-fired power plants are operating with critically low fuel inventories, leaving 74 facilities with less than three days of stock. While the government insists overall supply is sufficient, a combination of monsoon-related transport bottlenecks and an intense El Niño heatwave is straining the national grid.
Despite these immediate hurdles, the International Energy Agency projects a 4.2% increase in India’s total coal demand this year, reaching 1.353 billion tons. This upward trend marks a reversal of last year’s minor dip, driven by broader energy market volatility and the need to maintain baseload power. The Ministry of Coal maintains that it is closely monitoring the situation, with corrective distribution measures underway to stabilize stockpiles before they fall further below the standard 25% threshold.
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