India Races to Triple Coal Stockpiles to Prevent Summer Blackouts

India is making a concerted effort to triple its coal stockpiles in preparation for the upcoming summer, according to Bloomberg's latest report. The government's objective is to increase the country's coal reserves from the current 18 million tons to 55 million tons by the end of the fiscal year on March 31, as mentioned by unnamed sources.

The current stockpile, which is at its lowest point since 2021, is only sufficient for six days of power generation from coal plants. This is significantly lower than the government's minimum requirement of three weeks' worth of consumption. In some cases, coal stocks are critically low, leading to concerns about potential shortages.

Monsoon-related disruptions in August have exacerbated the situation, tightening the supply and transportation of coal from producing states to power plants. However, Indian Railways is increasing its capacity to transport coal, with carriage capacity for coal shipments rising by 20% last month. The government has also demanded an additional 7% increase by March next year.

India's coal demand is expected to rise by 4.2% to 1.353 billion tons this year, according to the International Energy Agency's Coal Mid-Year Update 2026. This increase is driven by higher power demand and disruptions in oil and gas supply at the Strait of Hormuz. While India is diversifying its energy mix with solar power, the intermittent nature of solar energy cannot meet the baseload power demand of the world's second-largest population.