Coal Minister G Kishan Reddy has provided reassuring updates on India's coal availability, stating that the country currently holds 123.7 million tonnes (MT) of coal across the system, equivalent to approximately 51 days of consumption. According to Reddy, around 100 MT is held by coal companies or is in transit, while thermal power plants have approximately 23.7 MT of coal stock. The minister emphasized that the stock available at power plants alone is sufficient for around 23 days, while the overall availability across the coal supply chain provides a much larger buffer. Despite critical stocks at some power plants, Reddy's assessment suggests that the temporary disruption caused by the monsoon is being treated primarily as a production and logistics issue rather than a fundamental shortage of domestic coal. However, the Central Electricity Authority (CEA) reports that 61 thermal power plants now have critical coal stocks as of September 7, up from 58 in just two days, indicating worsening supply challenges at the power sector level.
Northern Coalfields (NCL), one of Coal India's major coal-producing subsidiaries, has demonstrated significant operational recovery as monsoon conditions ease. According to reports from Business Standard, coal production rose by 67% and supplies increased by 75% as of 8 September 2026, compared to the average of 1-3 September 2026. The company's total coal production for FY 2026-27 stood at 51.43 MT, while supplies reached 55 MT by the same date, marking a substantial recovery from operational challenges posed by heavy rainfall. The improvement comes as the monsoon receded, with NCL focusing on converting improved mine conditions into higher production, faster dispatch and more dependable coal supplies. The recovery aligns with broader improvements across Coal India Limited, where average daily coal production rose by 40% from an average of 1.36 Million Tonne (MT) per day during the first three rain-affected days of September to 1.91 MT on 8 September 2026.
The production recovery comes amid critical power sector shortages, with the CEA reporting that 61 thermal power plants now have critical coal stocks as of September 7, up from 58 just two days earlier. Across the 190 stations the authority monitors, together accounting for 223.87 GW, stocks stood at 26.4 million tonnes, representing 45 percent of the normative requirement of 57.7 million tonnes. The shortage is concentrated rather than general, with plants located at the pithead holding 61 percent of their normative stock on September 7, while non-pithead stations running on domestic coal were at 40 percent. Stations designed for imported coal were the most comfortable, at 79 percent. The daily flow figures show consumption running ahead of deliveries, with stations receiving 2,296.9 thousand tonnes on September 7 and consuming 2,604.1 thousand tonnes. Around 87% of NCL's total coal supplies are directed to the power sector, with major coal supplies going to power plants in Uttar Pradesh, Madhya Pradesh and Rajasthan. Coal supplies to the power sector during April-August 2026 increased by around 4.5% year-on-year to 346.72 MT, according to the latest figures.
The operational improvement has been reflected in NCL's railway logistics, with rake loading through Indian Railways increasing to 41 rakes on 8 September 2026, compared with an average of 19 rakes per day during 1-3 September 2026. The Coal Ministry has been increasing despatches to the power sector, with rake loading to power plants rising to 444 rakes on September 6 from 370 on September 3, representing a 20 percent increase across four days. As reported by Business Standard, around 87% of NCL's total coal supplies are directed to the power sector, with major coal supplies going to power plants in Uttar Pradesh, Madhya Pradesh and Rajasthan. The Centre's message remains clear: India has sufficient coal reserves and there is no immediate reason to worry about a nationwide coal shortage, though the situation at individual thermal power plants remains an important consideration.
The minister acknowledged that heavy monsoon rainfall had affected coal production and transportation in several coal-producing regions, with production and movement disrupted for roughly 10 days as persistent rains affected mining operations and logistics. However, the situation has started improving as rainfall subsides, with coal production and dispatches expected to gain momentum. The government is relying on higher domestic production, improved logistics and better coordination between coal companies, the railways and power generators to maintain adequate stocks at thermal power plants. Reddy's comments indicate that the Centre does not currently see a systemic coal shortage threatening India's power sector, with the focus shifting from crisis management to operational efficiency and supply chain optimization. The CEA calculates the sector's normative daily requirement at 3,117.1 thousand tonnes at 85 percent plant load factor, highlighting the intensity of current demand pressures.
