India Eyes Record Coal Stocks at Power Plants by Year-End Amid Improved Supply and Lower Demand

The government projects that coal reserves at domestic coal-based power plants will reach approximately 62 million tonnes (mt) by the conclusion of the current fiscal year. This level represents a notable increase of nearly 6.7 mt compared to the opening stock at the beginning of the financial year. The current fuel stock at these plants stood at around 43.4 mt as of October 28, marking a substantial 38.5% rise year-on-year. This healthy stock position is a result of several factors, including a strong opening inventory of 55.3 mt, improved and sustained coal supply throughout the year, and lower power demand. Favorable weather conditions have led to reduced cooling needs, and higher availability of hydro and solar power have decreased reliance on thermal plants, consequently lowering their plant load factor. Although stock levels saw a dip in the second quarter, supplies have since picked up. The Coal Ministry is also targeting a significant increase in coal production to 1.15 billion tonnes in FY26, up from 1.05 billion tonnes in the previous year, to ensure continued supply security. Energy demand is expected to rise in the coming quarters.

Impact: This news indicates a stable and potentially abundant energy supply situation for India, which can prevent power outages, support industrial activity, and potentially moderate electricity prices. It suggests resilience in the energy sector against demand surges and supply disruptions. Rating: 8/10.

Difficult terms explained: Million tonnes (mt): A unit of measurement for weight, equal to one million tonnes. Thermal power plants: Power stations that generate electricity by burning fossil fuels, primarily coal. Plant load factor (PLF): A metric used to indicate the average output of a power plant in relation to its maximum capacity over a period. FY26: Fiscal Year 2026, which typically runs from April 1, 2025, to March 31, 2026, in India.