Business · India Bureau
India's thermal coal inventories hit 3-year low amid surging power demand
Coal stockpiles at thermal power plants have plummeted to their lowest levels in three years, raising concerns about supply adequacy as electricity consumption accelerates across the country. Storage levels fell to a nine-day supply in August, down sharply from a year earlier.
LSN India ·
Thermal power plants in India are operating with critically depleted coal reserves, with inventory levels dropping 42 percent to 29 million tonnes in August compared to 50 million tonnes a year ago, according to power sector data. The sharp drawdown has reduced stockpiles to just nine days of operational cover, the lowest buffer recorded in three years and well below comfort levels typically maintained by utilities.
The inventory squeeze reflects a combination of elevated electricity demand and constraints in coal procurement and logistics. Higher power generation from coal-fired plants has accelerated consumption of available stocks faster than replenishment efforts can sustain, straining the supply chain despite increased mining output.
Low coal reserves pose risks to grid stability during peak demand periods and limit the operational flexibility of thermal generators. Power stations typically maintain inventory buffers of 20-30 days to absorb supply disruptions and seasonal demand fluctuations.
The situation underscores ongoing challenges in India's energy infrastructure as the country seeks to balance rising consumption with reliable generation capacity. Mining companies and power distributors face mounting pressure to accelerate coal procurement and improve logistics efficiency to prevent further depletion of strategic reserves.