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

By admin
September 25, 2026 3 Min Read
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As stocks fall at power plants, govt mulls imported coal blending

NEW DELHI: With coal stocks at thermal power plants stretched, govt is considering allowing the blending of imported coal with domestic supplies to keep critical plants running.Senior officials said discussions with stakeholders were ongoing and a final decision was yet to be taken. If approved, it will be the first time since 2024 that govt mandates coal blending to tide over the current shortage.Central Electricity Authority data as on Sept 24 showed that of the 190 thermal power plants in the country, with a combined capacity of over 224 GW, 80 were categorised as “critical”. These include 70 plants based on domestic coal, eight designed to use imported coal and two that run on washery rejects. The recommended stock at these plants is 57.8 million tonne (MT), enough to last 19 days with zero supplies, while the available stocks was 22.3 MT, or 38%.A senior power ministry official said domestic coal stocks were sufficient, but govt was considering 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 said.Quoting trader iEnergy Natural Resources, Reuters reported earlier this month that coal imports by India’s power sector jumped 85.6% year-on-year to 5.5 MT in Aug, the highest since May 2025 and the third straight month of higher imports. About 80% of the imports came from Indonesia. Prices of imported coal from Indonesia, South Africa and Australia are already up nearly 50% in a year.The coal ministry, however, said 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 said.Data showed that as on Sept 24, nearly 69 MT of coal stock was available at mines operated by state-owned Coal India Ltd and another 0.8 MT at Singareni Collieries Company. Stocks at thermal plants, captive and commercial mines, private washeries, goods stock sidings, ports and in transit totalled over 44 MT.“There is a total coal stock of 114 MT, which is sufficient to run thermal plants for 48 days, besides 80 MT of exposed coal seam that is ready to be mined,” another coal ministry official said.Union power secretary Pankaj Agarwal said on Thursday that a rainfall deficit in some parts of the country had led to a 14% increase in power demand in Sept, pushing up fuel demand for coal-based power generation.“On one side, there are constraints on coal supply because of heavy rainfall and, on the other, we have been facing elevated (power) demand,” Agarwal said, adding that logistics challenges had now been addressed.Officials said an inter-ministerial sub-group was monitoring the situation, with 55 plants linked to Coal India and its subsidiaries for supplies reporting low inventories.“Stocks are being replenished at all these plants. Thermal power stations that have captive mines or rely on imported fuel have to manage their own sources,” a coal ministry official said.



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