Coal stocks at India's 190 coal‑fired plants have dipped to the lowest level in almost five years, with 87 facilities flagged as critical as of early October. Daily inventory fell by roughly 48,000 tonnes in the first 17 days of the month, a fifth of the 2023 September pace.
The government, citing benchmark thermal coal prices that have peaked at a three‑year high and the rupee’s slide, opted to scrap the import scheme rather than burden power stations with costly overseas purchases. Officials said the decision was driven by a need to keep fuel costs manageable amid soaring global prices.
Instead, the Union Ministry has instructed Coal India Ltd to lift output by up to 20% and the Indian Railways to maintain an average of 465 rakes per day, aiming to hit the 470‑rake target for consecutive days.
The move follows an earlier order that required more than 100 captive coal‑fired units to operate at full capacity from 1 October to year‑end to counter the expected rise in demand.
Coal ministry officials say the 20.6‑million‑tonne reserve—about one‑third of the recommended 61.2 million tonnes—will be redistributed as needed, with rail loading strengthening to aid stock rebuilding ahead of the festive season.
The next phase will see daily supply monitored closely, with the ministry projecting a gradual rebound in inventories as temperatures cool and domestic production ramps up.