Coal India’s Power Sector Supplies Reach Record High in October Amid Sustained Demand

State-run coal producer Coal India announced that its supply to the power sector grew approximately 19 percent year-on-year to 57.1 million tonnes (MT) in October. This marks the highest-ever monthly coal supply to the sector in the company's history, surpassing the previous monthly high of 56.5 MT recorded in May 2024. In the same month last year, supplies stood at 48 MT.

The performance follows operational pressures highlighted last week, where nearly half of domestic coal-based (DCB) power plants reported critically low coal stocks amid sustained electricity demand. Out of 176 DCB power plants with a combined installed capacity of around 207 GW, 85 plants held critical coal stocks as of October 25. Coal India noted that the supply growth was necessary to augment coal stocks at thermal power plants despite operational challenges posed by unseasonal rainfall, the Puja festivities, and the impact of a cyclone.

The record supplies were backed by Coal India's highest-ever coal production for October in any financial year, reflecting accelerated mining activity post-monsoon. Total coal production in October reached 67.2 MT, a 19.3 percent year-on-year increase compared to the previous October high of 62.47 MT in 2024.

Among the company's seven coal-producing subsidiaries, all except Northern Coalfields (NCL) recorded strong production growth. NCL's output declined 4.3 percent year-on-year to 11.4 MT. Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL), the two largest subsidiaries by output, posted year-on-year production growth of 25.34 percent and 17.4 percent, reaching 20.8 MT and 14.3 MT respectively.

Total coal offtake for the company reached 70.3 MT in October, registering an 18.7 percent year-on-year growth. This marks the first time monthly coal supplies crossed the 70 MT mark, beating the previous record of 69.4 MT set in March 2026. MCL also crossed the 20 MT monthly supply mark for the first time.

A senior Coal India official stated that with both production and offtake gaining momentum, stock accretion is expected at both power plant ends and pit heads. In e-auction sales, Coal India allocated 118 lakh tonnes, representing 91 percent of the 129.24 lakh tonnes offered under the single-window mode-agnostic route, with e-auction premiums rising to 140 percent over notified prices.

Additionally, Coal India reported an average power-sector rake loading of 310 rakes per day during October, marking its highest-ever monthly average for railway coal evacuation and surpassing the previous daily loading record of 302.8 rakes from March 2025.

"Coal India's latest production and supply milestone highlights the critical operational resilience required to manage fluctuating energy demands in the industrial sector. Surpassing peak performance benchmarks usually reserved for March during the month of October demonstrates strong supply-chain execution. However, the presence of critical coal stocks across nearly half of domestic power plants underlines the ongoing necessity for continuous logistical alignment between mining output, railway evacuation, and thermal power generation to maintain stable energy supplies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes