India Increases Coal Supplies to Stabilize Power Plant Stocks

The Ministry of Coal announced on Friday that daily coal supplies to India's power sector have increased by 36% from September lows. Rail-based supplies averaged 465 rakes per day in October, a level the ministry believes will stabilize the system and enable stock rebuilding before winter and summer demand peaks. Road-based supplies also improved after Coal India and its subsidiaries permitted power plants to lift additional coal beyond their annual contracts.

Data shows that the rate of stock depletion slowed by more than 50%, falling from 0.243 million tonnes per day in September to 0.116 million tonnes per day in October. While the ministry noted that actual stock rebuilding has not yet commenced, it characterized the current position as stabilizing.

To address media concerns over low inventories, the ministry clarified that the critical stock classification is an early-warning mechanism for plants below prescribed thresholds and does not indicate an imminent risk of shutdown. The government is currently coordinating with the Ministries of Railways and Power to redistribute supplies to vulnerable stations and ensure electricity generation remains unconstrained.