Indian Power Plants Face Coal Stock Depletion Ahead of Summer

Coal Reserves at Imported Thermal Power Plants Depleted Ahead of Peak Summer Demand

The Central Electricity Authority's (CEA) daily coal stock report has revealed that several imported coal-based thermal power plants run by the Adani and JSW groups are entering the peak summer demand season with sharply depleted coal inventories.

Despite the Centre's directive to operate imported coal-based units at full capacity from April 1 to June 30 to prevent supply shortages during the high-demand months, the reserves are running low. The data from the CEA's report shows that several imported coal-based plants were operating with only a fraction of their normative stock levels at the end of March.

The Adani Power's Mundra TPP-III had a stock of about 51,000 tonnes against the required 593,400 tonnes. Similarly, Adani's Mundra TPP-I and II, and JSW Energy's Ratnagiri plant (one of the four 300 MW plants) were also running well below the prescribed comfort levels. The plants' sufficiency levels were 15 percent for Mundra TPP-I and II, and 28 percent for JSW Ratnagiri TPP, as of March 30.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The CEA report flagged low reserves at the Mundra plants, directing operators to "build up stock through import." Coal stock is considered "critical" when it falls below 25 percent of the normative level. The power ministry has asked around 15 imported coal-based plants to maintain enough stock to operate at full capacity through June 30.

According to analysts, escalating prices and operational difficulties led these plants to keep stocks low, forcing some into eight-to-nine-month shutdowns. The low inventory levels are a concern as the government has asked imported coal-based plants to maximise generation to meet peak summer demand.

Tata Power has ramped up its 4,000-MW Mundra plant to full capacity, underscoring the government's push to keep all imported coal-based capacity ready as temperatures rise and electricity demand climbs. For coastal plants dependent on overseas fuel, the challenge is not only the physical availability of coal but also operating economics.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

These projects have faced stress when imported coal prices rose sharply and tariffs did not fully allow the pass-through of higher fuel costs. That has at times led to shutdowns, lower plant load factors, and prolonged underutilisation of capacity. The current stock position suggests that the vulnerability remains, despite the system's need for more power generation.

India met an all-time maximum electricity demand of 250 GW in FY25 and peak demand touched 242.49 GW in FY26, according to the power ministry's 2025-26 report. Official projections peg all-India peak demand at 277.2 GW in 2026-27, reflecting a steady rise in cooling demand as air-conditioner and appliance penetration increase.

Coal continues to remain central to India's power mix despite the rapid expansion of renewable energy. As of February 28, the country had installed generation capacity of 524 GW, of which about 248.5 GW came from thermal sources, including 227.8 GW from coal and lignite, according to the power ministry. The mix makes the health of coal supply chains critical during periods of peak demand.