59 Thermal Power Plants Face Critical Coal Stocks as Power Demand Stays Near Record Highs

India’s thermal power sector is facing increasing pressure on coal inventories, with 59 coal-fired power plants reporting critically low coal stocks as of September 9, 2026, according to the latest data from the Central Electricity Authority (CEA). The number has risen sharply from 45 plants at the end of August, underscoring the strain on the power supply chain as electricity demand remains close to record levels.

The CEA considers a thermal power plant to be in the critical category when its coal stock is below 25% of the applicable normative requirement or is sufficient for less than three days of generation. The latest figure therefore indicates a significant deterioration in plant-level fuel availability, although it does not by itself mean that the affected plants are about to shut down.

Critical plants nearly double from July

The deterioration has been rapid.

The number of thermal power plants with critical coal stocks stood at 31 at the end of July. It increased to 45 at the end of August, before climbing to 58 by September 5 and 61 on September 7. The figure subsequently eased to 59 on September 9.

The latest level is therefore almost double the 31 plants recorded at the end of July.

The movement is important because it shows that the pressure is not confined to a handful of plants. More generating stations have moved into the critical category even as efforts have been made to increase coal movement.

Plant-level coal stocks fall to 25.84 MT

The broader inventory numbers provide another indication of the pressure.

CEA data showed coal stocks at power plants at around 25.84 million tonnes (MT) on September 9, down 8.27% from a week earlier. At the same time, 59 coal-fired plants remained in the critical category.

Earlier CEA data showed that the 190 thermal power stations monitored by the authority, with a combined capacity of about 223.87 GW, held 26.4 MT of coal on September 7 against a normative requirement of about 57.7 MT. That amounted to only around 45% of the normative requirement.

At the beginning of September, the stock position was stronger. Coal stocks stood at about 28.6 MT on September 1, equivalent to roughly 49% of the normative requirement. By September 5, stocks had fallen to around 26.9 MT, or 46%.

The trend is therefore clear: coal inventories at generating stations have been declining even as the country continues to have substantial coal stocks elsewhere in the supply chain.

Coal is available — getting it to plants is the challenge

One of the most important aspects of the current situation is the difference between coal availability at the mine end and coal availability at power stations.

Coal India continues to hold about 76 MT of coal at its pitheads, according to the latest government and company information. The presence of substantial pithead inventories indicates that the current pressure cannot simply be described as an absolute shortage of coal in the country.

The immediate challenge is the movement of coal from mines to generating stations.

Monsoon rainfall has affected coal production, loading and railway movement in key coal-producing regions. At the same time, thermal plants have continued to consume coal at a high rate because of strong electricity demand.

The government has responded by increasing coal transportation. Coal rake loading for the power sector rose to 444 rakes on September 6 from 370 rakes on September 3, according to the Ministry of Coal. Coal India has also increased road-based supplies to power plants.

Power demand is adding to the pressure

The coal-stock situation is developing at a time when India’s electricity demand remains unusually high.

Peak power demand has been hovering around 267 GW, close to the all-time record of 270.70 GW reached in May. Persistently hot conditions have increased cooling requirements, keeping thermal generation under pressure.

Renewable generation, particularly solar power, is meeting a significant part of daytime electricity demand. However, limited battery-storage capacity means thermal generation continues to play an important role when solar output declines.

Lower reservoir levels and weaker hydro generation have added to the pressure on thermal generators, particularly during periods when demand remains high outside solar-generation hours.

September’s stocking norms are also important

The critical-stock figure needs to be interpreted alongside the CEA’s seasonal stocking norms.

The prescribed requirement is lower during the monsoon months and rises after the monsoon. For September, the applicable requirement is 12 days for pithead plants and 20 days for non-pithead plants, compared with higher requirements later in the year.

Consequently, a plant falling below its normative stock level does not automatically mean that it is about to run out of coal.

What matters for the power system is whether plants can replenish stocks quickly enough to maintain generation.

Why the next few days matter

The government’s response is focused on increasing production, dispatches and transportation to plants with inadequate inventories.

Coal India has offered additional coal to plants covered by fuel supply agreements, including quantities above their annual contracted quantities. Supplies through road and rail are being increased, while coal movement is being closely monitored.

The key indicator to watch now is therefore not simply the number of plants classified as critical.

The more important questions are:

• Are coal receipts at power plants consistently exceeding daily consumption?
• Are plant-level inventories beginning to rise?
• Is the number of critical plants falling?
• Are any plants actually reducing generation because of coal shortages?
• Can the rail and road network sustain higher coal movement if electricity demand remains elevated?

For now, the data points to tight fuel inventories at an increasing number of thermal generating stations rather than an outright national coal shortage.

But the sharp increase from 31 critical plants at the end of July to 59 on September 9 makes the situation one that warrants close monitoring. With power demand still near record levels, a prolonged gap between coal consumption and deliveries could put additional pressure on thermal generation.

The immediate test for India’s power sector is therefore straightforward: whether the increase in coal production and transportation can catch up with the rate at which thermal plants are consuming fuel.