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India's power plants face fuel crisis as coal stocks hit critical lows

Nearly 100 thermal power plants across India are operating with dangerously low coal reserves, with stocks lasting barely a week as electricity demand climbs sharply. The supply squeeze threatens grid stability during peak consumption periods.

LSN India · 25 October 2026

India's power plants face fuel crisis as coal stocks hit critical lows

Ninety-eight power plants in India are grappling with critically depleted coal inventories, with current stockpiles sufficient for only 6.3 days of continuous operations, according to latest assessments. The precarious situation underscores mounting pressure on the nation's fuel supply chain as power demand surges across industrial and residential sectors.

The inventory crisis arrives at a time when electricity consumption has been climbing steadily, driven by economic activity and seasonal demand fluctuations. Power plant operators typically maintain buffer stocks spanning at least two to three weeks to ensure operational continuity and guard against supply disruptions.

The shortage reflects persistent challenges in India's coal mining and distribution infrastructure, with production levels struggling to keep pace with the rapid expansion in power generation capacity. The situation has raised alarm bells among power sector regulators and grid operators concerned about potential blackouts or forced outages.

To address the shortfall, authorities have urged accelerated mining operations and optimized logistics networks to replenish stocks at affected plants. Officials are also coordinating with thermal power producers to manage load allocations more efficiently during peak demand hours to extend available fuel reserves.