India has set a target to increase coal reserves at power plants from about 18 mn t to at least 55 mn t by March 2027, as the government seeks to prevent fuel shortages before next summer. The plan has been agreed by the coal, power and railways ministries, according to people familiar with the discussions. The proposed stockpile would provide greater protection against supply disruptions, but prioritising power stations has already reduced availability for other industries. Coal inventories have recovered gradually over the past two weeks as temperatures cooled, although reserves remain at about six days of consumption, close to a five-year low. The administration generally expects power plants to hold around three weeks of supplies, though requirements differ by location. Almost half of the country’s power stations are classified as having critical stocks, with less than a quarter of the required amount available. Weak hydropower generation and strong electricity demand during hot weather have added pressure to the grid. Coal India, the country’s largest producer, increased shipments to a record level last month, with more than 80 per cent directed to power stations supplying the grid. Its production was also the highest recorded for October. Indian Railways provided 20 per cent more carriages in October than a year earlier, while the power ministry wants capacity to rise by a further 7 per cent by March. Improved supplies and softer electricity demand have helped stabilise power provision in areas including Chhattisgarh, where industries experienced blackouts last month. However, businesses operating captive power plants are waiting months for contracted coal and are being forced to buy fuel through higher-priced spot auctions or purchase electricity from the grid. Paper manufacturers have also reported only a marginal improvement in coal availability. The government is seeking to avoid electricity shortages ahead of elections in several key states during the first half of next year, including Uttar Pradesh, while preparing for possible disruptions to rail movement and fuel supplies during periods of severe smog.