No Coal Shortage at Power Plants, Says G Kishan Reddy

Reddy emphasised that temporary operational disruptions should not be interpreted as a coal shortage

Union Minister for Coal and Mines G. Kishan Reddy on Monday said there is no shortage of coal at power plants in the country, despite a rise in thermal power demand and temporary disruptions to mining operations during the monsoon.

Responding to questions on reports of coal shortages at power plants, Reddy said coal supplies were being maintained through both rail and road transportation. “There is no shortage of coal. We are supplying by rakes and road,” Reddy said on the sidelines of the Assocham-organised Angul Aluminium Roadshow.

Thermal Power Demand Rises 12–15%

According to the minister, demand for thermal power has increased by around 12–15 per cent, primarily because of lower hydropower generation. At the same time, monsoon conditions have affected coal mining operations at some locations.

Reddy, however, said these temporary operational disruptions should not be interpreted as a coal shortage.

“The situation is normal. There is no tension,” he said.

Rail-Road Logistics Being Used to Maintain Supply

The government is relying on a combination of rail and road logistics to ensure that coal reaches power plants even where rail movement faces temporary constraints.

Government data presented in Parliament earlier this year had also indicated that additional road-based supplies could be deployed wherever rail movement was constrained by route congestion or non-availability of rakes. Plant-level coal stocks are monitored continuously, with corrective dispatches arranged where required.

The coal supply mechanism also involves coordination among the Ministry of Coal, Ministry of Power, Ministry of Railways and Central Electricity Authority, with regular reviews of dispatches to the power sector.

Focus on Coal India Operations

Reddy, would be soon reviewing the operations of Coal India Limited (CIL) and its subsidiaries, including project progress and coal supplies following the monsoon.

The review comes at a time when the government is pushing greater use of technology in coal mining. According to the Coal Ministry, CIL is adopting technologies including IoT, artificial intelligence and data analytics, along with predictive maintenance, automated dispatch systems, smart control rooms and smart mines.

The minister also spoke about the coal industry in West Bengal, alleging that it had suffered for years from what he described as “jungle raj” and mafia control, and said the Centre was pursuing reforms aimed at improving transparency and state revenues.

Earlier Government Data Also Pointed to Adequate Stocks

The government’s position is consistent with data placed before Parliament in March 2026. A Lok Sabha response stated that approximately 123.2 million tonnes of coal was available at the mine end of Coal India as of March 12, 2026, with another approximately 3.9 million tonnes in transit, including coal at private washeries, goods sheds and ports.

For FY2024-25, the government had reported that domestic coal-based power plants received about 840 MT against consumption of around 832 MT, taking stocks at such plants to 55.5 MT as of March 31, 2025.

For now, the Coal Ministry’s message is clear: higher thermal power demand and monsoon-related mining disruptions are being managed through increased logistical coordination, with the government maintaining that there is no nationwide coal shortage at power plants.

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