India faces coal shortage as 98 power plants dip to six-day reserves

The Central Electricity Authority reported that 98 Indian power plants are in a critical stock position, with coal reserves sufficient for only 6.3 days of generation, about one-third of the normative 19-20 days. Total coal holdings declined to 19.7 mt, down 8% from September, and the situation coincides with a sharp rise in electricity demand across the country. Analysts from KPMG India and ICRA highlighted the risk of limited operational buffers and potential constraints on planned maintenance.

Domestic coal output fell 3.2% year-on-year in the first five months of FY27, while supply to the power sector rose modestly. The coal ministry said redistribution efforts are under way and that the drawdown rate has halved, but stock rebuilding has not yet started. In Gujarat, the utility asked large users to cut evening consumption after the state recorded its highest ever demand, prompting additional central coal shipments and plans to shift load to solar and storage.