Reddy rules out coal shortage despite 58 power plants reporting critical stocks

New Delhi: Union Coal Minister G Kishan Reddy on Tuesday sought to allay concerns over coal availability, saying the country has enough stock to meet demand for 51 days. His assurance, however, comes as the Central Electricity Authority (CEA) has classified 58 thermal power plants as having critical coal stocks.

Follow The PSUWatch Channel on WhatsApp

“We have 123 million tonnes of coal available with us, which is sufficient for 51 days in the country. Therefore, there is no problem with power plants having critical coal stock,” Reddy said on the sidelines of a Coal India CSR event.

The minister acknowledged that heavy monsoon rainfall had disrupted coal production for around 10 days but said operations had since normalised. Production could rise further if weather conditions remained favourable, he added.

Reddy said India’s coal production had grown 4.5 percent year-on-year so far. He also said coal companies had around 100 million tonnes available or in transit, while power producers were holding stocks sufficient for 23 days.

The minister maintained that there was no cause for concern as the Coal Ministry and coal-producing companies were monitoring supplies.

The national-level availability figures, however, mask uneven stocks across individual generating stations. According to the latest CEA report, 58 plants were in the critical category, including 53 domestic coal-based plants, four imported coal-based stations and one plant operating on washery rejects.

A thermal power plant is classified as critical when its coal inventory falls below 25 percent of its normative stock requirement.

Seven bids received for Rs 37,500-crore gasification scheme

Separately, the Coal Ministry said it had received seven applications in the first round of the Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects. The deadline for submitting bids was September 7.

Follow PSU Watch on LinkedIN

Applicants included NTPC, Adani Enterprises, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power. The ministry did not provide a project-wise breakdown explaining why seven applications had come from five named entities.

The request for proposal was issued on July 7, 2026. The Cabinet had approved the scheme on May 13 with a total financial outlay of Rs 37,500 crore.

The government is promoting coal gasification as a means of reducing import dependence and building domestic capacity for producing fuels, chemicals and industrial feedstock from coal. Eight projects are already under implementation under an earlier financial incentive scheme with an outlay of Rs 8,500 crore.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)