Government data showed that 45 power plants were operating with critically low coal inventories as of August 25, with 40 of the affected units being domestic coal-fired plants listed by the Central Electricity Authority. Monsoon rainfall disruptions to mining and transport coincided with hotter-than-usual weather linked to El Niño, increasing electricity demand. The situation has elevated operational risk at several thermal stations.

The number of plants with coal stocks below 25 per cent of required inventory or with supplies sufficient for less than three days rose from 31 at the end of July. Commodities consultancy BigMint reported a significant inventory drawdown through August that reduced stocks by 19 per cent from end-July levels. Coal stocks at power plants stood at 30.95 million tonnes (mn t), equivalent to around 10 days of operational requirement compared with 12 days in July.

Heavy rainfall in key coal-producing states including Odisha, Jharkhand and Chhattisgarh affected mining output and slowed rail and road transport, industry sources said, while uneven monsoon patterns drove greater demand for cooling. India has recorded 12 per cent less rainfall than normal so far this season, increasing reliance on coal generation particularly during overnight hours when cooling demand remains elevated. Operators reported shortages of rakes at some plants, noting that five to six rakes were required but only around half were arriving.

In response, the power ministry has advised some coal-fired stations to delay planned maintenance of units until the supply outlook becomes clearer, according to a senior ministry official. The combination of inventory drawdown and elevated demand has prompted closer monitoring of stocks and logistics to reduce the risk of supply disruptions. Officials and industry participants are examining measures to stabilise coal flows and maintain grid reliability.