Coal India Assures 175 MT Coal Buffer Ahead of Summer Power Demand Surge
New Delhi | February 27, 2026
Coal India Limited (CIL) has reaffirmed that it has adequate coal reserves across the supply chain to meet the anticipated surge in electricity demand during the upcoming summer season.
With power consumption already rising since January, the company has activated a multi-layered inventory strategy to prevent any supply disruptions and reduce dependence on imports.
Record Coal Stock at Power Plants
Coal stocks at domestic coal-based thermal power plants stood at nearly 55 million tonnes (MT) as of February 25, 2026. This is the highest stock level recorded for this period of the year.
In addition, around 5.5 MT of coal is currently in transit at goods sheds, washeries and ports, further strengthening supply readiness.
Strong Pithead Inventory Position
CIL’s producing subsidiaries are holding approximately 115 MT of coal at pitheads as of February 26, 2026. The company expects this figure to increase further by the end of the financial year.
High pithead availability ensures faster dispatch capability when demand accelerates during peak summer months.
In-Situ Coal Ready for Extraction
Beyond surface stockpiles, CIL has also exposed 60.2 MT of in-situ coal at mines that account for nearly 90 percent of its annual output. This coal has already been uncovered through overburden removal and can be extracted at short notice.
This ready-to-mine reserve adds an operational cushion in case of sudden demand spikes.
Three-Layer Supply Buffer Strategy
CIL’s preparedness rests on a structured three-tier buffer system:
• Pithead stock at coal mines
• Coal inventory at thermal power plants
• Exposed in-situ coal ready for extraction
Together, these sources provide an on-tap availability of approximately 175.5 MT of coal across the system.
According to senior company officials, this cumulative stock position offers strong operational assurance and effectively dispels concerns about domestic coal shortages during peak demand months.
Why Summer Coal Demand Matters
Coal-based thermal power continues to dominate India’s electricity generation mix, contributing roughly 70 percent of installed capacity and nearly three-fourths of total electricity output.
During summer, electricity consumption typically rises sharply due to increased use of air conditioners, cooling systems, refrigeration and irrigation pumps. Thermal power plants must ramp up generation to maintain grid stability, which significantly raises daily coal consumption.
Impact on Coal Imports
Higher domestic availability may help moderate coal imports, particularly at a time when international coal prices have shown upward movement in February 2026.
In FY25, India consumed over 1,300 MT of coal, with imports bridging the gap between domestic production and total demand. A strong domestic stock position could help reduce import dependency in FY26 if production momentum continues.
Outlook for FY26
With inventories at multi-year highs and extraction-ready reserves in place, Coal India appears positioned to handle seasonal demand fluctuations. The company’s current stock strategy suggests a proactive approach aimed at ensuring uninterrupted fuel supply, stabilising power generation and supporting industrial demand during the high-consumption summer period.
Conclusion
Coal India’s 175.5 MT cumulative coal buffer across mines, transit and power plants provides a strong safeguard against summer shortages. As electricity demand accelerates, the company’s layered supply chain strategy is expected to play a crucial role in maintaining grid stability and limiting costly imports.