Key facts
- Nearly 40% of India's operational coal plants have critically low coal inventory.
- 74 coal-fired power plants had less than three days of coal stocks as of the weekend.
- India's total coal demand is expected to rise 4.2% to 1.353 billion tons this year.
- Monsoon rains have disrupted coal supply and transportation.
- Recent domestic transportation issues have depleted coal inventory at power plants.
India is facing a significant depletion of coal stocks at its power plants, with nearly 40% of operational facilities running on critically low inventories, according to Reuters, citing government data. As of the past weekend, 74 coal-fired power plants had less than three days' worth of coal, a sharp increase from the previous week. Despite these low levels, the country is not experiencing critical supply issues, as the primary constraint has been domestic transportation disruptions amid rising power demand. The strong El Niño phenomenon has also contributed to increased electricity demand. Monsoon rains have further complicated the immediate availability and transportation of coal from producing regions to power plants. In response to falling stocks, India's Ministry of Coal has stated that domestic companies are increasing supply to affected plants. The International Energy Agency (IEA) forecasts that India's total coal demand will increase by 4.2% to 1.353 billion tons this year, reversing a slight drop from the previous year.