No Coal Shortage In India, Govt Boosts Supply To Power Plants Amid Rising Electricity Demand: G Kishan Reddy

Union Coal and Mines Minister G Kishan Reddy on Monday said India does not face any coal shortage and that the government is increasing supplies to coal-based power plants by deploying additional railway rakes.

“There is no shortage of coal. We are supplying coal, but power demand has gone up by 12-15 per cent. Production from hydel projects has also gone down. So, there is a significant demand for thermal power generation. Also, due to rainfall, there was some problem with coal production,” Reddy told reporters in Kolkata.

The minister was speaking on the sidelines of a roadshow aimed at attracting investments in the Angul Aluminium Park in Odisha.

Coal supply improves as power demand rises

Reddy said coal production has returned to normal levels after weather-related disruptions and assured that supplies are being strengthened.

“Now, the production situation is normal. We are increasing the supply of coal through more railway rakes. The situation is normal, and there is no tension now,” he added.

The clarification comes after concerns emerged over coal availability at thermal power plants amid a sharp rise in electricity demand. Last week, around 40% of India’s coal-fired power plants were operating with critically low fuel stocks due to increased demand during hotter-than-usual weather conditions linked to El Niño.

Data from the Central Electricity Authority showed that the number of power plants with critically low coal inventories rose to 74 as of September 19, compared with around 60 a week earlier. Plants with such stock levels either had less than 25% of their required inventory or enough coal for fewer than three days of generation.

Thermal power demand remains elevated

India’s peak power demand has remained between 230 gigawatts and 250 gigawatts over the past week, increasing pressure on coal supplies.

The government has been focusing on improving coal movement to power stations through enhanced railway transportation. Officials said increased supply through additional rakes would help maintain adequate fuel availability as demand for thermal power generation remains strong.