
G. Kishan Reddy, Minister for Coal and Mines said India’s coal stock has reached a level that can support electricity demand for about 90 days, marking a major improvement in energy stability.
The coal stock now stands at over 200 million tonnes, a sharp rise from earlier years when supply buffers were tight and unpredictable. The coal stock build-up reflects stronger domestic production and better supply coordination across the system.
The concern around shortages did not emerge suddenly. In 2021 and 2022, India faced one of its most difficult coal supply phases in years. Several thermal power plants reported coal stock levels dropping to critical lows, in some cases below a week of supply.
At that time, power demand recovered quickly after COVID disruptions, while mining and transport were hit by heavy monsoons. Global coal prices also surged, making imports expensive and harder to secure. This combination created a real risk of power disruptions and forced emergency planning across the sector.
Also Read: Coal India Absorbs Cost Surge to Keep Coal Prices Stable
The current coal stock position reflects a clear reversal of that stress period. India has now crossed 1 billion tonnes of coal production for two straight years. This steady output has helped rebuild reserves and stabilize the coal stock pipeline from mines to power plants. Earlier, average stock levels were around 21 to 25 days, but today the system holds close to 90 days of buffer supply.
The improvement is not just about production. Better rail movement, faster evacuation from mines, and closer coordination between generators and suppliers have strengthened the entire supply chain. Coal India Limited continues to play a central role, contributing more than three-fourths of domestic coal output.
Key data points
The shift in coal stock levels marks a clear turnaround from shortage risk to system stability. It gives policymakers more control during peak demand seasons and reduces exposure to global price shocks that earlier created uncertainty in the power sector.
We use cookies to ensure you get the best experience on our website. Read more...