Business EconomyPosted at: Sep 21 2026 6:00PM

New Delhi, Sep 21 (UNI) Nearly 40% of India's coal-fired power plants are operating with critically low fuel stocks, as electricity demand remains elevated amid hotter-than-usual weather conditions, according to government data released on Monday.
The number of power plants with critically low coal inventories rose to 74 as of September 19, up from around 60 a week earlier, data from the Central Electricity Authority (CEA) showed.
The category includes plants holding less than 25% of their required coal stock or having enough fuel to operate for fewer than three days.
India's power demand has remained strong in recent days, with peak electricity demand ranging between 230 gigawatts and 250 gigawatts over the past week.
The country's highest-ever peak demand of 270.70 GW was recorded in May.
The decline in inventories comes as power generators face higher electricity demand while coal movement has been affected by logistical disruptions.
The coal and railway ministries said earlier this month that they were working to increase supplies to power plants after irregular monsoon rainfall disrupted coal transportation.
However, analysts at Crisil have described the situation as primarily a temporary logistical challenge rather than a structural shortage of coal.
This suggests that the pressure on plant inventories could ease if coal deliveries normalise.
India's renewable electricity generation increased by around 21% between April and August, according to Crisil.
Despite this growth, coal-fired power plants continue to have a major role in meeting India's round-the-clock electricity requirements.
Renewable sources such as solar and wind are dependent on weather conditions and therefore cannot consistently supply electricity at the same level throughout the day.
Coal-based generation consequently remains important for meeting demand when renewable output is insufficient.
The pressure on domestic supplies has also pushed power producers towards overseas markets.
India's coal imports by power generators rose to a 15-month high in August, according to a Reuters report last week.
The increase came as higher electricity consumption coincided with subdued hydropower generation, prompting utilities to source additional coal from international markets despite the higher cost associated with imports.
With peak demand still elevated and coal stocks at several plants running close to critical levels, the pace of domestic coal deliveries and the recovery in hydroelectric generation will remain important factors for India's power supply in the coming weeks.
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