The Albany Gazette - India seeks threefold increase in coal stocks to prevent summer power shortages

India has asked coal miners and railways to help triple stockpiles at power stations before next summer, an ambitious target aimed at averting shortages that could also raise tensions with other users of the fossil fuel. The coal, power and railways ministries jointly set a goal to boost inventories at the plants from current levels near 18 million tons to at least 55 million by the end of the fiscal year in March, as reported by people familiar with the matter. That would roughly match reserves at the same time this year, the people said, asking not to be identified because the discussions are private. Coal India Ltd. , the country’s biggest producer, and the ministries of power and railways didn’t immediately respond to a email requesting comments. The coal crunch has rippled through the economy over recent months, causing blackouts and raising energy costs.

Weak hydropower output and heat-driven electricity demand have further increased pressure on the grid, while Coal India’s prioritization of power plants has left factories short of fuel. Inventories have slowly recovered over the past two weeks as temperatures cooled. However, stockpiles remain near a five-year low of about six days, leaving the system vulnerable to disruptions — such as from Cyclone Arnab last month — and complicating preparations for summer. The administration typically wants plants to hold about three weeks of supplies, though requirements vary by location. almost half of power stations have critical stock levels, meaning they hold less than a quarter of the required amount. The government seeks to avoid power shortages ahead of elections in several key states in the first half of next year, including Uttar Pradesh, India’s most populous state and a political battleground.

Coal India and the Indian Railways have boosted efforts to reach the March target. The state miner’s shipments rose to a record last month, exceeding the previous all-time high set in March, with more than four-fifths going to power stations supplying the grid. Production was also the highest ever for an October, the company said. More railway capacity has also become available. In October, the state-owned transport company provided 20% more carriages than a year earlier. The power ministry wants that to rise another 7% by March, as reported by the people.

The improved supplies and weaker electricity demand have helped stabilize electricity provision in areas including Chhattisgarh, where industries suffered blackouts last month. But prioritizing power stations has squeezed other coal users. Businesses that operate their own power plants are waiting months for contracted supplies, forcing them to buy coal at higher prices in spot auctions or purchase electricity from the grid, as reported by Rajiv Agarwal, secretary general of the Indian Captive Power Producers Association. That may worsen along with smog in northern India, he said. “In the coming weeks, as the smog gets worse, it will disrupt railway traffic and we expect supplies to tighten further,” Agarwal said. Manufacturers of paper for newspapers have also seen only a marginal improvement in coal availability for their operations, as reported by Vijay Kumar, secretary general of the Indian Newsprint Manufacturers Association.

Kumar wrote a letter to Prime Minister Narendra Modi last month, seeking his “urgent intervention” to ease the crunch by allocating less fuel to power plants. More stories like this are available on bloomberg. com ©2026 Bloomberg L.

(L.Thomas--TAG)