India is accelerating coal deliveries to power plants after the number of thermal stations with critical inventories rose to 58 by September 5, from 46 at the end of August.
Yet the latest data point to a more complicated problem than a simple shortage: while stocks at power stations have fallen, Coal India still holds 76 million tonnes at mine pitheads, making transportation, dispatch and the timing of replenishment central to the current pressure.
Power Plant Stocks Come Under Pressure
Coal inventories at thermal power plants declined from 28.6 MT on September 1 to 26.9 MT on September 5, a roughly 6% fall in five days, according to data reported by Business Standard from the Central Electricity Authority.
At the same time, plant inventories dropped from 49% to 46% of normative requirements. The CEA defines a critical stock situation as inventory below 25% of the applicable normative requirement.
Of the 58 plants classified as facing critical stocks, 53 use domestic coal, according to CEA data cited by Reuters. The increase does not by itself mean those plants are about to stop generating electricity, since actual risk depends on factors including daily coal receipts, consumption and the amount of coal available at each station.
Rail Movement Gets A Boost
The government’s immediate response has been to increase coal movement to power stations.
Coal loading to the power sector rose from 370 rakes a day on September 3 to 444 rakes on September 6, according to the Ministry of Coal.
Loading increased every day during that period: 387 rakes on September 4 and 413 on September 5 before reaching 444. The ministry described the increase as a sustained improvement involving Coal India, its subsidiaries, Singareni Collieries and captive mine operators.
The jump amounts to roughly 20% in four days, providing an important test of whether faster evacuation can rebuild inventories at power plants.
Monsoon Disrupts Coal Movement
The pressure has emerged during the final phase of the monsoon, when heavy rainfall can complicate mining, coal handling and transportation.
The Ministry of Coal said prolonged rainfall during July and August affected coal-producing regions. By early September, however, conditions had begun improving. Coal India’s average daily production rose from about 1.36 MT during the first three days of September to approximately 1.7 MT on September 4, while daily dispatches to the power sector increased from about 1.35 MT to 1.5 MT.
This recovery is important because the latest numbers show that coal availability at the production end remains substantially higher than the inventories held at power stations.
Coal India Maintains Supply Cushion
Coal India’s supply data also provide context. The company supplied 322.90 MT between April and August of FY2026-27, 6.70% more than the 302.60 MT supplied during the same period a year earlier.
In August alone, total supplies reached 60.60 MT, up 5.50% year-on-year. Supplies to the power sector rose 4.5% to 48.46 MT.
Coal India also reported 76 MT of coal at pitheads, along with 46 MT of ready-to-mine coal exposure. The company has offered power plants with fuel supply agreements the option to lift additional quantities above applicable annual contracted quantities through road transport, alongside existing rail supplies.
These figures suggest that the immediate challenge is not adequately described as India “running out of coal”. The more relevant issue is ensuring that available coal moves consistently from mines and evacuation points to individual power stations quickly enough to match consumption.
What Happens Next Matters
The next few days will show whether the higher railway loading rate translates into higher plant inventories. The government has already said loading is improving as rainfall eases, while Coal India expects mining and dispatch conditions to strengthen further.
For the power sector, the key indicators are therefore not simply the number of plants labelled critical. Plant-level coal receipts, consumption, inventory levels and any resulting generation constraints will determine whether the current pressure remains a seasonal logistics problem or develops into a broader supply concern.
For now, the data support a cautious reading: thermal power plants are facing tighter coal inventories, but national coal availability has not been shown to have collapsed. The government’s accelerated rail movement and Coal India’s substantial pithead stocks provide a buffer, while improving weather conditions could help ease the pressure.
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