Coal supply to Indian power plants is expected to normalise soon as the country supplies a record 2.6 million tonnes daily. However, critically low coal stocks at power plants have risen following rain disruptions and increased peak electricity demand.

NEW DELHI — Coal supply to Indian power plants is expected to normalise soon, according to a senior power ministry official who spoke on Thursday. The official stated that the country is currently supplying a record 2.6 million tonnes of coal to power plants every day.

The statements follow data from the Central Electricity Authority showing that the number of power plants with critically low coal stocks—defined as having enough fuel to generate power for less than three days—increased to 96 as of October 19, up from 60 in mid-September.

India increased coal supplies to facilities, including top power generator NTPC, after scattered rains in mining areas disrupted deliveries. Additionally, reduced hydropower usage has placed extra pressure on coal-fired plants, as the El Niño weather pattern has affected regular rainfall levels, the official noted.

Meanwhile, daily peak electricity demand has risen by approximately 45 to 50 gigawatts compared to a year earlier. This surge has been driven by hotter weather conditions and higher industrial production across the country.

Addressing regional updates, the federal power ministry has allocated additional power to Gujarat, India’s top industrial state, maintaining that there is no power or coal shortage within the state. This follows a Reuters report indicating that Gujarat had asked factories to curb electricity use during evening hours to manage surging demand. Gujarat state authorities declined to comment on the report.

"The current strain on India's power sector highlights the critical interdependence between infrastructure, energy supply chains, and industrial manufacturing. As peak electricity demand surges due to higher industrial production and weather patterns, robust supply chain management becomes essential for businesses. For startups and enterprises operating in the industrial and energy sectors, monitoring these infrastructure shifts is vital for operational planning and risk mitigation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes

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