Business · India Bureau
Thermal plants bolster coal reserves as supply situation eases
India's thermal power plants are maintaining coal inventories above 18 million tonnes as the supply-demand gap narrows. The facilities, which generate over 60 per cent of peak-hour electricity, require less than 3 million tonnes daily.
LSN India ·

Thermal power plants across India have built up coal stockpiles exceeding 18 million tonnes, signalling a marked improvement in fuel availability for the nation's critical power generation infrastructure. The accumulation reflects easing pressures on coal supply chains that have historically constrained electricity production during peak demand periods.
Domestic thermal plants consume approximately 2.5 to 3 million tonnes of coal per day under normal operating conditions. Given their outsized contribution to the grid—accounting for more than 60 per cent of electricity generated during peak hours—maintaining adequate fuel reserves is essential for grid stability and meeting consumer demand across the country.
The narrowing supply deficit underscores improved coordination between mining operations and power plant procurement. Higher inventory levels provide thermal facilities with greater operational flexibility and reduce the risk of generation shortfalls during periods of elevated electricity consumption.
Industry observers say sustained monitoring of coal stocks and supply logistics remains vital as India continues to balance growing power demand with fuel availability. The current inventory position suggests the sector is better positioned to manage seasonal fluctuations and unexpected supply disruptions than in previous years.