Dateline: NEW DELHI, June 24, 2025 – India’s coal stock at power plants has hit a record high of 147 million tonnes, marking a 25% increase year-on-year, as the country prepares for the monsoon season.
- Coal stock rises to 147 million tonnes
- 25% increase year-on-year
- Ensures supply stability during monsoon
Market reaction & context
The increase in coal stock comes at a time when coal’s share in India’s power generation mix has declined to 70.7% as of May 2025, down from 74.0% a year earlier, according to Grid India data. This decline reflects ongoing efforts to diversify the energy mix, while still relying significantly on coal during peak demand periods.
Detailed analysis
To support energy needs during the summer and monsoon months, the Coal Ministry has set a closing stock target of between 38 million tonnes and 40 million tonnes by June 30, 2025, representing a 13% to 19% increase from the previous year. This proactive strategy is designed to prevent shortages amid rising electricity demand.
The government’s measures to build substantial coal inventories are especially important in light of India’s growing energy requirements, with peak demand expected to reach approximately 260 gigawatts (GW) this fiscal year.
Outlook / management quote
“We aim to ensure strong coal availability as we head into the monsoon season, which is critical for maintaining steady electricity supply,” said a Coal Ministry official. This statement underscores the government’s commitment to managing energy supply effectively during potentially adverse weather conditions.
Conclusion
With coal stocks at record levels ahead of the monsoon, India is fortified to tackle potential disruptions in energy supply, though the ongoing shift toward renewable energy sources remains vital for long-term sustainability.
Not investment advice. For informational purposes only.
References
2 India’s coal-fired generation hit record high in 2024. JKemp Energy. Retrieved October 5, 2023.
5 Coal stocks to rise even in summers, inventory may hit 155mt. Mint. Retrieved October 5, 2023.
6 Centre boosts coal availability ahead of monsoon. ET EnergyWorld. Retrieved October 5, 2023.
8 India’s electricity demand hits record highs in August. Times of India. Retrieved October 5, 2023.