Critically low coal stocks in India are now affecting nearly 40% of the country’s coal-fired power plants, according to government data published on Monday 21 September 2026. The shortfall follows a surge in electricity demand during hotter-than-usual weather linked to El Niño.
What the Data Shows
The Central Electricity Authority (CEA), which updates its figures daily, reported that 74 power plants were in the critical category as of 19 September. A plant falls into that category if its coal stock is below 25% of the required inventory, or if it can generate electricity for fewer than three days. The figure rose sharply from about 60 plants the previous week.
Demand remains elevated. Peak power demand, the measure of the maximum electricity requirement on the grid, has been hovering between 230 gigawatts and 250 gigawatts over the past week. It reached an all-time high of 270.70 gigawatts in May.
Why Fuel Stocks Are Under Pressure
Two factors are combining. The first is demand, which has been driven by unusually warm weather associated with El Niño. The second is logistics. India’s coal and railway ministries said in early September that they were increasing supplies to the plants after erratic monsoon rains had disrupted shipments.
Other sources of power have not fully filled the gap. Renewable power generation rose by about 21% between April and August, according to Crisil. However, because clean energy is intermittent, coal-fired generation continues to play a critical role in meeting round-the-clock demand.
Rising Coal Imports
Indian power producers have also turned to overseas supplies. Their coal imports in August rose to a 15-month high, as a heatwave boosted electricity demand while hydroelectric generation remained subdued. Those cargoes are costly compared with domestic supply, which adds to the financial burden on utilities.
What Critically Low Coal Stocks in India Mean for the Power Grid
Crisil analysts have said that the decline in stocks at power plants appears to be a temporary logistical issue rather than a sign of structural supply constraints. On that reading, the pressure should ease as transport recovers and the additional supplies announced by the ministries reach the plants.
Even so, the direction of the weekly data will be closely watched. A further rise in the number of plants in the critical category would indicate that deliveries are not yet keeping pace with consumption. Conversely, a decline would suggest that the measures taken by the coal and railway ministries are taking effect. The daily CEA figures will therefore remain the clearest indicator of how quickly the position is improving.
Published in SouthAsianDesk, September 22nd, 2026
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