As stocks fall at power plants, govt mulls imported coal blending

Delhi: As thermal power plants grapple with dwindling coal stocks, the government is weighing the possibility of permitting blends of imported coal with domestic supplies to keep the critical facilities operational. Officials from the power ministry confirmed that discussions with various stakeholders were underway, but a definitive decision had not yet been made. If the measure is approved, it would mark the first instance since 2024 that the government mandates coal blending to address the current shortage.

Data from the Central Electricity Authority, as of September 24, revealed that out of the 190 thermal power plants in India, with a combined capacity exceeding 224 gigawatts, 80 of them were classified as "critical." These critical plants include 70 units powered by domestic coal, eight designed to utilize imported coal, and two that operate on washery rejects.

The recommended stock at these critical plants is 57.8 million tonnes, which should suffice for about 19 days if no new supplies are received, while the current available stocks stand at just 22.3 million tonnes, or 38% of the recommended amount.

A senior power ministry official stated that while domestic coal stocks were sufficient, the government was still deliberating on whether blending imported coal could be allowed for a few days. "We are still mulling if blending is required at all and, if yes, what should be the quantum," the official remarked.

According to a report by Reuters earlier this month, coal imports by India's power sector surged by 85.6% year-on-year to 5.5 million tonnes in August, the highest level since May 2025 and the third consecutive month of increased imports. Approximately 80% of these imports came from Indonesia. The prices of imported coal from Indonesia, South Africa, and Australia have already surged by nearly 50% over the past year.

The coal ministry, however, assured that domestic coal supplies to thermal plants were improving. "There were temporary and transient disruptions over the last two days due to rains, which will be recovered," a senior coal ministry official stated. As of September 24, there was a total of nearly 69 million tonnes of coal stock available, comprising 69 million tonnes from mines operated by state-owned Coal India Ltd and an additional 0.8 million tonnes from Singareni Collieries Company.

This stock is enough to run thermal plants for 48 days, in addition to 80 million tonnes of exposed coal seam that is ready to be mined.

Union Power Secretary Pankaj Agarwal informed on Thursday that a rainfall deficit in certain parts of the country had caused a 14% increase in power demand in September, thereby boosting fuel demand for coal-based power generation. "On one side, there are constraints on coal supply due to heavy rainfall, and on the other, we have been facing elevated power demand," Agarwal explained, adding that logistics challenges had been addressed in recent times.

Officials mentioned that an inter-ministerial sub-group was keeping a close eye on the situation, with 55 plants linked to Coal India and its subsidiaries reporting low inventories. Efforts are being made to replenish the stocks at all these plants, and thermal power stations with captive mines or reliance on imported fuel are required to manage their own sources, according to a coal ministry official.