{"id":83888,"date":"2026-09-05T18:22:04","date_gmt":"2026-09-05T12:52:04","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=83888"},"modified":"2026-09-05T18:22:38","modified_gmt":"2026-09-05T12:52:38","slug":"coal-stocks-thermal-power-plants-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/05-09-2026\/coal-stocks-thermal-power-plants-india","title":{"rendered":"Coal Stocks at Thermal Power Plants Fall Below Recommended Levels"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Coal stocks at thermal power plants across the country have fallen to less than half the recommended level, with 50 plants classified as having \u201ccritically low\u201d inventories.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These 50 plants, with a combined capacity of around <strong>224 GW,<\/strong> had coal stocks of <strong>28.2 million tonnes (MT) <\/strong>against the prescribed requirement of <strong>58.7 MT <\/strong>representing only<strong> 48%<\/strong> of the normative requirement.<\/li>\n\n\n\n<li>The available coal stock was equivalent to around nine days of consumption at an <strong>85% Plant Load Factor (PLF)<\/strong>, compared with the normal requirement of approximately <strong>19 days.<\/strong><\/li>\n\n\n\n<li>Power plants are classified as facing <strong>coal-stock shortages<\/strong> when their inventories fall below <strong>25%<\/strong> of their normative stock requirement.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Coal Production in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India, with the <strong>fifth-largest coal reserves <\/strong>and being the <strong>second-largest consumer, <\/strong>heavily depends on coal.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the current financial year, cumulative production through July stood at <strong>302.04 MT,<\/strong> while overall coal dispatches rose by about <strong>6%<\/strong> year-on-year to <strong>354.7 MT.<\/strong><\/li>\n\n\n\n<li>Coal stocks available at different stages included <strong>34.55 MT <\/strong>at thermal power plants and around <strong>113 MT at pitheads or in transit.<\/strong> The combined stock was therefore around <strong>148 MT.<\/strong><\/li>\n\n\n\n<li>Coal- and lignite-based power plants, with around <strong>230.8 GW of installed capacity, <\/strong>remain critical for India&#8217;s energy security.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons for the Decline in Coal Stocks<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower and uneven rainfall has <strong>increased electricity demand,<\/strong> particularly due to higher use of air-conditioning.<\/li>\n\n\n\n<li>Cooling demand remains elevated, including during night-time hours when <strong>solar power generation is unavailable,<\/strong> increasing dependence on thermal generation.<\/li>\n\n\n\n<li>The monsoon season annually <strong>affects coal mining,<\/strong> transportation and the movement of coal through rail networks.<\/li>\n\n\n\n<li>India received around <strong>12% less rainfall <\/strong>than normal during the monsoon period, increasing reliance on coal-fired electricity generation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Coal-stock requirements<\/strong> for thermal power plants have existed for several years.\n<ul class=\"wp-block-list\">\n<li>The current Central Electricity Authority (CEA) framework took effect in December 2021, introducing revised, plant-specific stocking norms aimed at strengthening fuel security and inventory planning.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy, approved in 2025<\/strong>, streamlined coal-linkage allocation into two windows.\n<ul class=\"wp-block-list\">\n<li><strong>Window I <\/strong>provides coal linkages to central government-owned generating companies and state utilities at notified prices\u00a0<\/li>\n\n\n\n<li><strong>Window II <\/strong>allows other eligible producers, including<strong> imported-coal-based plants<\/strong>, to procure coal through auctions at a premium over the notified price.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Inter-Ministerial Coordination:<\/strong> The Ministries of Coal, Power and Railways coordinate regularly to monitor coal supplies and facilitate their movement to power plants, particularly during periods of supply disruption.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Commercial coal mining <\/strong>opened the sector to private players to boost production, efficiency, and competitiveness.<\/li>\n\n\n\n<li><strong>Coal Mitra Portal <\/strong>developed for flexible coal allocation to power plants, ensuring better coal supply management.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s recent coal-stock situation highlights that the <strong>challenge is not necessarily a shortage of coal<\/strong> at the national level but how efficiently supplies are allocated, transported and converted into adequate plant-level inventories.<\/li>\n\n\n\n<li>As thermal power continues to play a crucial role in ensuring grid stability, strengthening compliance with stocking norms and ensuring equitable emergency coal redistribution will be essential to maintain reliable and uninterrupted electricity supply.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Classification of Coal<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Anthracite:<\/strong> It is the best quality of coal which carries<strong> 80 to 95%<\/strong> carbon content. It has the highest calorific value.\n<ul class=\"wp-block-list\">\n<li>It is found in small quantities in <strong>Jammu and Kashmir.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Bituminous:<\/strong> It carries <strong>60 to 80%<\/strong> of carbon content and a low level of moisture content. It is widely used and has a high calorific value.\n<ul class=\"wp-block-list\">\n<li>It is found in <strong>Jharkhand, West Bengal, Odisha, Chhattisgarh and Madhya Pradesh.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Lignite: <\/strong>It is often brown. It carries <strong>40 to 55% carbon content<\/strong>. It has high moisture content so it gives smoke when burnt.\n<ul class=\"wp-block-list\">\n<li>It is found in <strong>Rajasthan, Lakhimpur (Assam), and Tamil Nadu.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Peat:<\/strong> It has less than 40% carbon content. It has low calorific value and burns like wood.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Coal India Limited<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CIL is a <strong>Maharatna Public Sector Undertaking <\/strong>under the <strong>Ministry of Coal.<\/strong><\/li>\n\n\n\n<li>It was <strong>established<\/strong> in <strong>November 1975.<\/strong><\/li>\n\n\n\n<li><strong>Headquarters:<\/strong> Kolkata.<\/li>\n\n\n\n<li><strong>Products: <\/strong>CIL produces coking coal, semi-coking coal, non-coking coal, washed and beneficiated coal, coal fines, and coke.<\/li>\n\n\n\n<li>CIL has 21 training Institutes and 76 Vocational Training Centres.<\/li>\n\n\n\n<li><strong>Strategic Relevance:<\/strong> It contributes to <strong>80%<\/strong> of total domestic coal production and 75% of total coal based generation.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/coal-stock-management-emerges-as-key-challenge-for-thermal-power-producers\/article71369117.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Coal stocks at thermal power plants across the country have fallen to less than half the recommended level, with 50 plants classified as having \u201ccritically low\u201d inventories. <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> These 50 plants, with a combined capacity of around 224 GW, had coal stocks of 28.2 million tonnes (MT) against the prescribed requirement of 58.7 MT representing only 48% of the normative requirement. <\/li>\n<li class=\"ms-5\"> The available coal stock was equivalent to around nine days of consumption at an 85% Plant Load Factor (PLF), compared with the normal requirement of approximately 19 days. <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/05-09-2026\/coal-stocks-thermal-power-plants-india\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-83888","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/83888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=83888"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/83888\/revisions"}],"predecessor-version":[{"id":83890,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/83888\/revisions\/83890"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=83888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=83888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=83888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}