India's Coal Demand Set to Jump 4.2% as Plant Stocks Hit Critical Lows
The share of coal-fired power plants in India running on critically low levels of coal inventory has soared in recent weeks to nearly 40% of all operational coal plants, Reuters reported on Monday, citing government data. As many as 74 coal-fired power plants had fewer than three days’ worth of coal stocks as of this weekend, sharply higher compared to 60 in the previous week, per the data from…
India's coal demand is projected to increase by 4.2% this year, according to the International Energy Agency's Coal Mid-Year Update 2026. The share of coal-fired power plants with critically low coal inventory has risen to nearly 40% of all operational plants. As of this weekend, 74 coal-fired power plants had less than three days' worth of coal.
This surge in low-stock levels is mainly due to disruptions in domestic transportation, which have affected coal supply to the power plants in several states. Despite this, India currently does not face significant supply issues, as many coal-fired power plants have already received increased domestic coal supply to maintain their operations.
The significant drawdown in coal stocks is mainly attributed to monsoon-related disruptions and higher power demand, driven by the strong El Niño phenomenon.
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