Coal India Says 168 MT Stock Available, Rules Out Coal Shortage Amid Rising Summer Demand

State-run Coal India Limited on Tuesday sought to ease concerns over a possible coal shortage in the country, saying it has built up a coal buffer stock of 168 million tonnes (MT) to comfortably meet rising electricity demand during the peak summer season.

The clarification comes as India continues to see unusually high power consumption amid intense heatwave conditions across several states. According to the company, coal supplies remain sufficient despite a sharp rise in daily consumption by thermal power plants.

Strong Coal Buffer In Place Ahead Of Peak Summer

Coal India said the 168 MT stockpile includes coal held at pitheads as well as supplies already available across the power generation chain. Of this, around 47.6 MT is currently stocked at thermal power plants, which is enough to cover approximately 19 days of consumption at current burn rates.

The remaining 113.5 MT is available at mine pitheads, providing an additional cushion to dispatch fuel to power producers whenever required. Coal stock at mines is reported to be roughly 10% higher year-on-year as of 23 May 2026, reflecting the miner’s advance build-up strategy before peak summer demand.

Coal India, which accounts for nearly 80% of India’s domestic coal output, has also directed all its subsidiaries to increase dispatches to thermal utilities to avoid supply bottlenecks. The company has asked power generators, especially those in remote locations, to replenish inventories using all available rail and road logistics options.

Power Demand Surges As Temperatures Rise

India’s electricity demand has surged to record levels this month. Last week, the country’s peak power demand touched 270.8 gigawatts (GW), marking an all-time high as cooling demand rose sharply due to extreme temperatures. Despite rapid renewable capacity additions, coal continues to remain the backbone of India’s power mix. They contribute more than 70% of electricity generation.

The company’s reassurance also comes against the backdrop of concerns over low inventories at several utilities. Reports indicate that 21 thermal power plants currently hold coal stocks sufficient for less than seven days, increasing focus on supply preparedness ahead of the summer peak.

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Coal India’s own production, however, saw some pressure at the start of the financial year. Output from the company and its subsidiaries declined 9.7% year-on-year in April 2026 to 56.1 MT. Even so, the miner said the existing stockpile is strong enough to offset short-term production fluctuations and maintain an uninterrupted supply to domestic coal-based power plants.

Sources:

Business Standard

Reuters