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Domestic coal-based power plants in India were critically low on coal stocks as of September 20 2026

ICICIdirect Research 22 Sep 2026 DISCLAIMER

News: Nearly 38% (65/175) of domestic coal-based power plants in India were critically low on coal stocks as of September 20 2026. Cumulative coal stocks at DCB plants dropped to approximately 19.9 million tonnes (mt) against a daily burn requirement of 2.94 mt, down sharply from 35.13 mt at the end of July. Similarly, more than half (8 out of 15) of imported coal-based power plants faced critical inventory levels. Between April and August, coal consumption by thermal plants grew ~8% year-on-year to 395 mt due to a 9.5% surge in power demand, while rake loading rose by only 5%.

View: The shortage in domestic coal based plants was driven by intense rain disruptions in the eastern coal belt and sustained power demand. This acts as a strong near-term catalyst for Coal India and is likely to increase offtake volumes. With the pithead inventories robust at 76 million tonnes, Coal India is positioned to benefit in e-auction premium as well as the shortage fueled increased offtake. It also supports coal India's 810 MT production target for FY27.

Impact: Positive

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