August 28, 2026 - Coal inventories at India’s power plants that rely on domestic supplies have dropped to their lowest level of the year, tightening the cushion available to generators as the country moves through the monsoon season.

As of August 24, domestic-coal-based power plants held about 28.36 million metric tons of coal, according to Central Electricity Authority (CEA) data. That amount represents roughly 9.7 days of consumption, compared with the recommended inventory level of 19.4 days. In other words, plants are holding only about half of the prescribed coal supply.

The decline appears to be driven primarily by transportation and logistical problems rather than insufficient coal production. CEA observations from individual power plants point to several challenges, including shortages of railway rakes, unloading difficulties, and delays in moving coal from captive mines.

At some facilities, coal supplies have reportedly remained at ports or in transit, prompting generators to take steps to clear and transport the available material.

The timing raises additional concerns because India is in the middle of its June-to-September monsoon season. Heavy rainfall can interfere with mining operations, coal transportation, and railway traffic, potentially slowing deliveries to power plants at a time when thermal generation remains important for meeting electricity demand.

Historical comparisons show how sharply inventories have declined. The August 24 total of 28.36 million metric tons was the lowest for that date in four years and only slightly above the 28.11 million metric tons recorded in 2022.

Inventories stood at 29.55 million metric tons on the same date in 2023, increased to 37.52 million metric tons in 2024, and climbed to 48.18 million metric tons in 2025.

The number of days those inventories could support power generation has also fallen considerably. Current supplies provide an estimated 9.7 days of coverage, compared with 10.8 days in 2022, 11.2 days in 2023, 13.8 days in 2024, and 17 days in 2025.

The tighter coal supply comes as thermal power generation remains elevated. Strong electricity demand and weaker hydropower output have increased the need for coal-fired generation this year.

Although India continues to rapidly expand its renewable energy capacity, coal remains the backbone of the country’s electricity system, accounting for approximately two-thirds of total power generation. Thermal plants also provide dependable electricity when output from renewable sources varies.