Coal India’s Extra Coal Offer: Why Are Power Plants Running Low?

State-run Coal India Ltd (CIL) has offered power plants covered by its fuel supply agreements additional quantities of coal beyond their annual contracted volumes as stocks at thermal power plants continue to decline, The Times of India reported.

Data from the Central Electricity Authority (CEA) showed that 57 power plants had critically low coal stocks as of Sep 4. Total coal availability stood at 27.1 million tonnes (MT), equivalent to 47% of the recommended requirement of 57.7 MT.

The development comes after prolonged rains affected coal production and movement across key mining regions during July and August.

Coal Supply Shows Signs Of Recovery

The Coal Ministry said the situation could improve as rainfall in coal-producing regions has started to ease. Production and dispatches from Coal India’s mines have also begun to pick up.

According to the ministry, CIL supplied 322.9 MT of coal between April and August of the current financial year, 6.7% higher than the 302.6 MT supplied during the same period last year.

Coal supplies to the power sector also increased 4.5% year-on-year to 48.46 MT in August 2026, the ministry said.

CIL currently has around 76 MT of coal stocked at its pitheads, along with another 46 MT of ready-to-mine coal, providing a cushion as supplies recover.

Rains Hit Production, Mining Activity

The ministry said wet and sticky coal beds are now drying, making freshly mined coal easier to handle and transport. Some coal seams at lower mine levels that were submerged during the rains are also being brought back into production.

Daily coal production has already shown an improvement. The average output rose from 1.4 MT during the rain-affected first three days of September to nearly 1.7 MT on Sep 4, despite having only one day without rain.

The additional coal offer is aimed at supporting power plants as they rebuild inventories and coal production and movement return to normal levels.