Coal ministry clarifies that adequate coal has been made available as Coal India remains fully committed to ensuring uninterrupted coal supply for power generation across the country
Coal stocks at thermal power plants (TPPs) have fallen nearly 29 per cent in just over a month, from 38 million tonnes (mt) at the end-July to 27.14 mt on September 4, as supply disruptions coincide with sustained power demand. The number of plants with critical coal stocks has also risen from 51 to 57 in just five days, indicating that roughly one-third of the cumulative operating coal-based capacity of roughly 224 gigawatts (GW) is now carrying critical suppliesAccording to the latest Coal and Power Ministry data, the number of plants with critical stocks rose to 57 on September 4, up from 51 on August 31. At the end of July 2026, TPPs had 38 mt of coal stocks, which declined to 29.12 mt at the end of August and further to 27.14 mt on September 4.Decline reasonA major reason for the decline in stocks at the TPP end is that historically, supplies get stretched during monsoon, as rains hinder mining activity and transport. Besides, the coal bearing states of Odisha, Jharkhand and Chhattisgarh witnessed heavy to very heavy rains during August, further impacting transport. For September as well, the weatherman expects heavy rains, which are expected to start moderating by mid-month.Another reason is that TPPs are burning more coal due to high power demand since April, which has stretched into August as high heat and humidity is pushing up cooling demand.For instance, energy consumption in July stood at around 171 billion units (BU)—the highest on record for any month—driven by a spurt in usage of cooling equipment amid a rainfall deficit triggered by El Niño, according to Crisil Intelligence. The demand remained near the same levels during August, with energy consumption touching 169.01 BUs.Electricity demandRising electricity demand during evening and night hours, due to more than the average maximum and minimum temperature and humidity, has pushed up buy bids on power exchanges.For instance, Indian Energy Exchange (IEX) recorded a monthly electricity traded volume of 13.527 BUs in July 2026. The country’s largest power exchange also recorded its highest ever monthly electricity traded volume in August at 13.938 BUs.The frantic buying activity also pushed up prices. For instance, the average market clearing price (MCP) in the Day-Ahead Market at IEX stood at ₹4.88 per unit in August, a 22 per cent year-on-year (y-o-y) increase. Similarly, the average MCP in the Real-Time Market stood at ₹4.41 a unit during, registering a 30.4 per cent y-o-y growth.Minisitry’s respondMeanwhile, media reports pointed to stretched coal supplies at TPPs in Punjab forcing the Coal Ministry to respond.The Ministry on Sunday said that media reports attributing reduced power generation at Punjab’s thermal plants to inadequate coal supply from the Centre do not present the complete picture. “The Ministry of Coal clarifies that adequate coal has been made available to Punjab’s power plants, and Coal India remains fully committed to ensuring uninterrupted coal supply for power generation across the country, including in the State of Punjab,” it added.Published on September 6, 2026
