Key facts
- Coal stocks of 18 million tons cover six days of coal-fired generation, per Bloomberg.
- Government rules require at least three weeks of consumption in stock, per Bloomberg.
- Indian Railways must add a further 7% of coal carriage capacity by March, per Bloomberg.
- The IEA projects India's total coal demand rising 4.2% to 1.353 billion tons in 2026.
- The IEA linked part of the demand rise to oil and gas disruptions at the Strait of Hormuz.
India's coal, power and railway ministries are working jointly to lift national coal stocks to 55 million tons by March 31, the end of the Indian fiscal year, Bloomberg reported on November 4, citing unnamed sources. Stocks stood at 18 million tons, the lowest since 2021, and enough for six days of coal-fired generation.
Government rules require at least three weeks of consumption held in stock. Half of India's coal power plants had critically low stocks last month, and some plants remain at critically low levels, per Bloomberg.
In August, monsoon-related disruptions tightened the immediate availability and transport of coal from producing states to coal-fired plants. Indian Railways raised coal carriage capacity for coal shipments by 20% last month and the government has demanded a further 7% increase by March, per Bloomberg.
The International Energy Agency, in its Coal Mid-Year Update 2026, projected India's total coal demand rising 4.2% to 1.353 billion tons in 2026, reversing a slight drop last year. The IEA attributed part of the increase to higher power demand and to oil and gas disruptions at the Strait of Hormuz. India is adding solar capacity, but the variable source cannot cover baseload demand, the report said.