SUNDAY, SEPTEMBER 6, 2026|No. 14061
India Energy Crisis

India Faces Worsening Energy Shortage as Coal Stocks Hit Critical Lows

A significant number of Indian power plants are reporting critically low coal stocks, raising concerns about a potential energy crisis and its impact on industrial output.

Coal is loaded onto a truck at a power plant in India, symbolizing the nation's reliance on the fossil fuel.
Coal is loaded onto a truck at a power plant in India, symbolizing the nation's reliance on the fossil fuel.
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State-run Coal India Limited (CIL) has offered power plants with fuel supply agreements additional quantities of coal, beyond their stipulated annual contracts, as stocks at thermal power plants continue to dwindle. Data from the Central Electricity Authority (CEA) indicated that as of September 4, the number of plants with critically low coal stocks had risen to 57. The total available stock was estimated at 27.1 million tonnes, which is 47% of the recommended requirement of 57.7 million tonnes. The Times of India had previously reported that 50 out of 190 coal-fired power plants had less than 25% of their recommended coal stock.

The coal ministry stated that the situation is expected to improve due to easing of intense rains in coal-producing regions and an increase in coal production and supply from CIL mines. The ministry highlighted that CIL maintained steady supplies despite heavy rains in July and August, particularly in the East-Central regions. During April-August of the current fiscal year, CIL supplied 322.9 million tonnes of coal, a 6.7% increase compared to 302.6 million tonnes supplied during the same period last year.

Supplies to the power sector in August 2026 also saw a 4.5% rise to 48.46 million tonnes, compared to August 2025. CIL reported holding a stock cushion of 76 million tonnes at its pitheads, in addition to 46 million tonnes of ready-to-mine coal.

The ministry further noted that sticky and wet coal beds are now drying out, making freshly mined coal easier to handle and dispatch. Coal seams in lower mine horizons that were submerged are also being brought back into production.

Average daily coal production increased from 1.4 million tonnes during the first three days of September, which were affected by rain, to nearly 1.7 million tonnes on September 4, despite only a single day of respite from the rain.

PAN's pipeline reviewed approximately 2 open sources for this article. No human editor reviewed this article before publication.

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