India coal stockpile falls as deliveries improve

Stocks are still far below the normative requirement of 57.23 million tonnes, leaving enough coal for only about 6.5 days of consumption as of Oct. 5. Of 176 domestic-coal-based power plants, 81 were classified as critical, underscoring how tight inventories remain even after the recent improvement.

The ministry said daily depletion has eased sharply, falling to 0.116 million tonnes a day in October from 0.243 million tonnes a day in September. Rail logistics are also improving, with more than 465 rakes a day moving coal in October and the target of 470 rakes reached on three straight days.

For investors, the immediate takeaway is that India is not headed into a near-term forced outage cycle, which reduces tail risk for power producers and coal suppliers. At the same time, the thin buffer keeps the market focused on logistics, weather and demand trends heading into the festive and winter seasons, when electricity use typically rises.

State-run NTPC, India’s biggest power generator, is moving to secure additional supply by planning to buy 10 million tonnes of coal from captive and commercial mines by the end of FY27. NTPC’s standalone fleet had 4.58 million tonnes in stock on Oct. 5, enough for nearly six days, and 10 of its plants were also classed as critical.

The government said easing monsoon conditions and a seasonal moderation in peak demand by mid-October should help rebuild stocks, provided rail loading stays in the 465-475 rake range. For now, the story is less about an outage and more about whether India can restore a comfortable coal cushion before demand climbs again.