Archive · 28 Sep 2026
Minister Denies Coal Shortage Amid Rising Power Demand
India’s coal minister says the country is not running out of coal.
Power plants have needed more coal because people are using more electricity.
Hydropower also produced less electricity than usual.
Rainy-season conditions made some coal mining and transport more difficult.
The minister said these problems are temporary and that coal supplies are still being provided.
The government has also asked some industrial power plants to produce as much electricity as they can.
These plants must first use power for themselves.
Any extra power must be sold so it can help supply the wider electricity system.
Union Coal and Mines Minister G Kishan Reddy said India has no coal shortage despite increased electricity demand.
Thermal power demand rose about 12–15% as hydropower generation declined, while monsoon conditions disrupted mining operations.
Reddy said temporary disruptions should not be interpreted as a nationwide coal shortage and described the situation as normal.
The Ministry of Power directed captive coal-based plants of 50 MW or more to generate electricity at the highest possible level from October 1.
The directions will remain in force through December 31, 2026, requiring surplus electricity from these plants to be sold through permitted channels.
- Who
- Union Coal and Mines Minister G Kishan Reddy, the Ministry of Power, and captive coal-based power plants.
- What
- The minister denied a coal shortage, while the government ordered larger captive coal plants to maximize generation and sell surplus electricity.
- When
- Reddy made the remarks on Monday; the power-generation directions apply from October 1 through December 31, 2026.
- Where
- Reddy spoke on the sidelines of the Assocham-organised Angul Aluminium Roadshow.
- Why
- Electricity demand has risen, hydropower generation has declined, and monsoon conditions disrupted mining operations; the measures aim to maintain adequate power supply.
Coal-shortage concerns
Government response
Current coal availability
Coal-shortage concerns
Reports and questions raised concerns about an alleged coal shortage at power plants.
Government response
G Kishan Reddy said there is no shortage, that coal is being supplied by rail and road, and that the situation is normal.
Meaning of mining disruptions
Coal-shortage concerns
Higher demand and monsoon-related interruptions could be viewed as signs of pressure on coal supplies.
Government response
The minister said the disruptions are temporary and should not be interpreted as a coal shortage.
Role of captive power plants
Coal-shortage concerns
The government’s order reflects concerns about maintaining enough electricity during periods of higher demand.
Government response
The Ministry of Power says maximizing captive generation and selling surplus electricity will improve power availability and use existing capacity.
- Coal supply position
- G Kishan Reddy said there is no coal shortage and that the overall situation is normal.
- Thermal power demand
- Demand increased by approximately 12–15%.
- Hydropower
- Hydropower generation declined, increasing reliance on thermal power.
- Mining disruptions
- Monsoon conditions affected coal mining operations.
- Covered power plants
- Captive coal-based power plants with capacity of 50 MW or more.
- Directive period
- October 1 to December 31, 2026.
- Surplus electricity
- Plants must sell excess power through power exchanges or other permitted channels.