India faces coal shortages at half of its power plants

Approximately half of India’s 191 coal-fired power plants are operating with critically low fuel stocks, according to data from the Central Electricity Authority. As of October 19, 96 plants reported having enough coal to generate power for less than three days, up from 60 plants in mid-September.

The shortage is driven by a surge in electricity demand, which has been 45 to 50 gigawatts higher than last year due to hotter weather linked to El Niño and reduced hydroelectric output from weak monsoon rains. While non-fossil sources account for nearly 55% of power generation, a lack of battery storage capacity has increased reliance on thermal plants during peak periods.

Production challenges also contribute to the supply gap. After years of growth, coal production declined by 0.73% in 2025–26. Recent data from the Ministry of Commerce and Industry’s Index of Eight Core Industries showed a 3.8% year-on-year contraction in coal production in August. While private and captive mining have increased output, these gains have not fully offset production declines at major traditional producers like Coal India Limited and Singareni Collieries Company Limited.