India coal stocks were critically low at 85 of the country’s 176 domestic coal-based power plants as of October 25, 2026, leaving many generators with a thinner buffer against supply disruptions.

Key Takeaways

  • The number of domestic coal-based plants with critical stocks rose from 81 to 85 over the 10 days ended October 25.
  • Seven of the 15 imported coal-based plants also had critical stocks.
  • ICRA’s Ankit Jain said electricity demand remained strong while domestic coal production declined in the first five months of fiscal 2027.

India coal stocks fall across power plants

Critical stocks at domestic coal-based plants are defined as less than 25% of their normative coal stock requirement. The number of such plants reached 91 on October 21, the highest level of the year, before easing to 85 four days later.

The 176 domestic coal-based plants have a combined installed capacity of around 207 gigawatts. The 15 plants using imported coal have a combined capacity of about 17.77 gigawatts; the number of those with critical stocks remained at seven over the 10-day period.

Domestic coal-based plants held 17.67 million tonnes of coal on October 25, down from 18 million tonnes on October 16. Stocks at imported coal-based plants fell to 2.26 million tonnes from 2.42 million tonnes over the same period.

Inventories provide a thinner buffer

Stocks at domestic coal-based plants have fallen substantially since the end of July, when they stood at 35.13 million tonnes. They were 26.04 million tonnes at the end of August and 18.60 million tonnes on October 1.

Coal inventories help power plants continue operating through supply disruptions, although plants also receive coal on a daily or ongoing basis. Ankit Jain, vice-president and co-group head of corporate ratings at ICRA, said stocks covered around six days of requirements as of October 10, below the roughly 19–20 days required by norms.

Demand rises as coal production declines

Jain said domestic coal production fell 3.2% year on year in the first five months of fiscal 2027, largely because of lower output from Coal India. Coal supply to the power sector nevertheless increased 4% over the same period.

Citing Grid Controller of India data, Jain said electricity demand grew 23.4% year on year in the first 10 days of October. Demand had risen 10.2% in the first six months of fiscal 2027, supported by higher-than-normal temperatures, cooling needs and industrial activity.

Jain cautioned that a further inventory decline, particularly alongside weaker production or supply constraints, could limit the sector’s ability to meet a sharp increase in peak demand.

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