Mandatory Imported Coal Blending
India Considers Mandatory Imported Coal Blending Amid Low Plant Inventories
Anonymous
India’s Ministry of Power is considering requiring thermal power plants to blend up to 5% imported coal with domestic coal, but discussions are preliminary and no decision has been made. The proposal comes as inventories have fallen amid rising electricity demand and transportation disruptions, including monsoon-related delays. As of September 19, stocks at 74 of 190 plants were classified as critical; aggregate inventories were 22.9 million tonnes, equivalent to about seven days of cover. Officials and reports say the shortages reflect difficulties moving coal to some plants rather than a critical shortfall in India’s overall coal supply. A mandate would reverse the country’s recent effort to boost domestic production and limit reliance on imports, and would be its first such requirement since 2024.
Key Points
1
The Central Electricity Authority defines a plant’s coal stocks as critical when they are at least 25% below the required inventory or are sufficient to generate power for fewer than three days.
2
Crisil Intelligence reported that power-plant coal stocks fell from 50 million tonnes in August 2025 to 29 million tonnes in August 2026, with stock cover dropping from 17 days to 9 days—the lowest level in 34 months.
3
A previous coal-blending advisory was dropped after October 15, 2024, when domestic supply improved, according to the Ministry of Power’s 2026 year-end review.
4
The International Energy Agency forecast that India’s coal demand would rise 4.2% in 2026 to 1.353 billion tonnes, reversing a slight decline the previous year.
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