Coal Supply to Power Plants Rises 36% from September Low; Stock Depletion Slows

Coal supplies to power plants across India have gathered pace in October, with daily deliveries rising around 36% from the September low and the rate of stock depletion falling by more than half, according to the Ministry of Coal.

The improvement signals a gradual stabilisation of the coal stock position, although stock rebuilding at domestic coal-based (DCB) power plants has yet to begin.

Daily coal stock depletion has declined from 0.243 million tonnes per day in September to 0.116 million tonnes per day in October. Average coal supplies during October have also been around 9% higher than in September.

Rail logistics have strengthened alongside the improvement in supplies. Coal loading has averaged more than 465 rakes per day in October, with the target of 470 rakes achieved on three consecutive days. Supplies through other transportation modes, including road, have also increased.

Critical stock position under close watch

The Ministry has clarified that the classification of a power plant as having critical coal stocks is based on prescribed norms for minimum stock levels. It serves as an early-warning mechanism and does not necessarily mean that a plant has run out of coal or faces an imminent shutdown.

The increase in the number of plants falling under the critical-stock category is being closely monitored. Coal is being redistributed to vulnerable stations based on their requirements to maintain adequate fuel availability and prevent disruptions in electricity generation.

Focus on rebuilding stocks

With the monsoon receding and power demand historically tending to moderate by mid-October, sustained coal loading of 465–475 rakes per day is expected to support further stabilisation.

The immediate priority is to move beyond slowing stock depletion towards rebuilding inventories ahead of the festive season, winter demand and the subsequent summer peak. An improvement in stock levels would also help reduce the number of power plants classified as having critical coal stocks.

The Ministry of Coal, in coordination with the Ministries of Railways and Power, is monitoring coal supplies and transportation logistics to ensure that fuel availability does not constrain power generation anywhere in the country.

While the October trend offers signs of relief, the effectiveness of the supply push will ultimately depend on whether higher daily deliveries can be sustained long enough to replenish depleted stocks and strengthen preparedness for future demand peaks.