Coal stocks at the country’s thermal power plants improved to 45.8 million tonnes at the end of September, up 24% from the same period last year as above-normal rains led to lower than anticipated electricity demand.
The stocks are at 82% of the normative level of 55.7 million tonnes, compared to just 68% in the same period of last year, data from the Central Electricity Authority showed.
Improved inventory & critical stock status
Of the 185 thermal plants with a total generation capacity of 216.8 GW, 18 reported to have a critical stock level. Of these, 11 were domestic coal-based plants. A plant is said to have a critical stock situation when the dry fuel is less than 25% of the normative level. During the same period of last year, 29 plants had a critical stock level.
Coal stocks at power plants have improved this year as above normal rains cooled down temperatures, lowering power demand and resulting in improved hydel generation.
Domestic coal-based thermal plants, including pithead and non-pithead, with a total capacity of 198 GW had 82% of the normative coal stock at 42.8 million tonnes. The normative level of stocks required at these plants is 51.9 million tonnes for this time of the year.
The 17 imported coal-based non-pithead plants with a total generation capacity of 18.7 GW had coal stocks of 79% of the required level. The total coal stocks as on September 30 in the imported coal-based plants were at 3.0 million tonnes against a normative stock requirement of 3.8 million tonnes.
Power demand trends and future outlook
The country’s peak power demand reached 241 GW this year as against CEA’s estimate of 270 GW. In 2024, the peak demand for power had touched 250 GW in May against the government’s projection of 260 GW.
The government expects the peak power demand to grow at a compound annual growth rate of 7% in the next five years against the current CAGR of 6%.
State-owned Coal India has set a production target for FY26 at 915 million tonnes in line with the projected rise in demand.
Coal production from captive and commercial mines during August 2025 in the financial year 2025–26 was recorded at 14.43 million tonnes, while dispatches reached 15.07 million tonnes.
Moving forward, the emphasis will be on maintaining consistent production, reducing supply interruptions, and making a substantial contribution to the country’s rising energy needs, the coal ministry has said.