3 days ago
India Power Plants’ Coal Stocks Fall to Nine Days
Coal stocks at India’s power plants became much smaller in August 2026.
The plants had enough coal for about nine days, compared with 17 days the year before.
This happened because people used more electricity during a very hot summer.
Coal power generation also increased because coal plants help provide electricity throughout the day.
Rain in coal-producing areas made mining and transporting coal more difficult.
However, coal mines still had about 76 million tonnes in stock.
Crisil said this means India does not appear to have a major shortage of coal.
The main problem is getting coal from mines to power plants quickly enough.
Coal India allowed some plants to transport extra coal by road as well as by rail.
Crisil expects plant inventories to improve if transportation continues to get better.
Coal inventories at India’s thermal power plants fell 42% year-on-year to 29 million tonnes in August 2026.
Coal stock cover dropped to nine days, the lowest level since November 2023, as coal-based generation increased 13%.
Fifty-one of 190 thermal power plants had critically low stocks, compared with 20 plants a year earlier.
Crisil said higher demand and limited coal transportation, worsened by rains, caused the inventory decline.
The report said adequate miner inventories and improved evacuation logistics should support recovery, though coal plants will remain important for power supply.
- Who
- India’s thermal power plants, coal producers, transport operators, Coal India and Crisil Intelligence.
- What
- Coal inventories at thermal power plants fell to 29 million tonnes, providing about nine days of stock cover.
- Where
- Across India, with particularly low stocks reported in several states including Rajasthan, Madhya Pradesh and Andhra Pradesh.
- When
- The decline was reported for August 2026, following developments between April and August.
- Why
- Higher electricity demand and coal-based generation outpaced coal receipts, while rains disrupted mining and coal transportation.
Temporary Logistics Problem
Immediate Inventory Concern
Meaning of falling plant stocks
Temporary Logistics Problem
Crisil said adequate inventories at mines and improving evacuation logistics indicate that the decline is temporary rather than a structural supply constraint.
Immediate Inventory Concern
The fall to nine days of cover and the increase to 51 critically low-stock plants indicate significant short-term pressure on thermal power stations.
Availability versus delivery
Temporary Logistics Problem
Pithead inventories were about 76 million tonnes in August, broadly aligned with recent averages, suggesting coal availability remains adequate.
Immediate Inventory Concern
Power plants received coal more slowly than they consumed it: rake loading rose 5% and receipts 3%, while consumption increased 8%.
Future power supply
Temporary Logistics Problem
Crisil expects coal dispatches and coal-based generation to grow moderately in the second half of the fiscal year, with stocks recovering.
Immediate Inventory Concern
Adverse weather, mining disruption and delays in rail or rake capacity could further reduce coal deliveries to power plants.
Key facts
- Plant coal inventory
- 29 million tonnes in August 2026, down from 50 million tonnes a year earlier.
- Stock cover
- Nine days, down from 17 days and the lowest level since November 2023.
- Critically low-stock plants
- 51 of 190 thermal power plants, compared with 20 a year earlier.
- Coal consumption
- 395 million tonnes between April and August, up about 8% year-on-year.
- Power demand
- Up 9.5% between April and August, amid an abnormally hot summer and below-normal monsoon rainfall.
- Pithead inventories
- About 76 million tonnes in August, compared with a peak of 157 million tonnes in early March 2026.
- Transport response
- Coal India permitted plants with fuel supply agreements to lift additional coal by road alongside rail from September 7, 2026.
Quotes
Surbhi Kaushal
Crisil Intelligence Associate Director
“India's pithead inventories moderated sharply from a peak of 157 MT in early March 2026 to ~76 MT in August 2026, reflecting the normalisation of elevated stocks.”
CNBC TV 18
“As such, the recent decline in power plant stocks appears to be a temporary logistical issue rather than a sign of any structural supply constraint.”
CNBC TV 18
Sources
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