India’s Domestic Thermal Power Plants Maintain Coal Stocks for 21 Days: Government Update

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India’s thermal power plants are currently well-stocked with coal, securing electricity generation for 21 days amid record coal production, significantly reducing reliance on imports.

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Approximately 3 minutes and 15 seconds.

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In a significant development, the Ministry of Coal has reported that India’s domestic thermal power plants possess sufficient coal reserves to maintain electricity generation for an estimated 21 days. This comes amid a record year for coal production, with approximately 1,048 million tonnes (MT) produced in the 2024–25 financial year. This achievement represents a nearly 5% increase from the previous year’s output of 998 MT, demonstrating India’s efforts to enhance energy security through boosted domestic output.

As of December 31, total coal stocks in these plants reached nearly 50.3 MT, reflecting over a 17% increase compared to the 43 MT available at the end of the previous year. This substantial stockpile is a welcome change from the severe shortages faced during the 2021–22 period, when the average coal stock was merely four days. It is generally recommended for thermal power plants to maintain a normative stock of 20-23 days to smoothly operate at 85% load factor. Currently, there are around 188 thermal power plants in India, collectively boasting an installed capacity of nearly 220 gigawatts.

The notable rise in coal availability has drastically reduced the dependence on imported coal, which has fallen by 54.2% over the last year. The ministry highlighted that only 5.5 MT of coal was imported for blending until December 25, down from 12 MT in the same timeframe of the previous year. Overall, coal imports during the first nine months of the 2024–25 fiscal year decreased by 7.9%, totaling approximately 243.6 MT. This reduction is projected to yield substantial foreign exchange savings, estimated at around $7.9 billion. Such developments highlight an ongoing commitment to achieving energy self-sufficiency and sustainability, aligning with global trends of reduced dependency on fossil fuels.

The coal sector’s growth is critical for India’s energy landscape, aiming to meet not just domestic demand but also to ensure a more resilient infrastructure for future power needs. The strong coal production figures indicate that India is enhancing its capability to invest in renewable energy projects, thereby supporting its long-term goals of cleaner energy, while simultaneously fortifying its thermal power sector.

Short Summary

India’s thermal power plants are well-prepared with an ample 50.3 MT coal supply, ensuring 21 days of electricity generation. Record coal output and reduced imports reflect the country’s push for energy independence and financial savings.

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