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Coal demand at power plants seen rising 11.5%
ET Bureau | April 8, 2026 4:19 AM CST

Synopsis

India's power plants anticipate a significant rise in coal demand for the April-June quarter. Electricity generation is set to increase, driving the need for more coal. Total coal inventory is at a record high, ensuring supply. Peak power demand is expected to surge in May-June due to above-normal temperatures. Coal-based plants remain crucial for baseload power.

Peak summer demand for electricity expected to reach 271 GW in May-June
New Delhi: Coal requirement for domestic coal-based power plants is projected to rise 11.5% to 233 million tonnes in the April-June quarter, driven by higher electricity generation, people aware of the matter said.

For the full fiscal year, coal demand is estimated at 906 million tonnes, compared with the actual requirement of 826 million tonnes in FY26.

Electricity generation from domestic coal-based plants is expected to increase 13.3% to 341 billion units in the first quarter, partly on a low base.


Coal stock at domestic coal-based power plants stands at around 54 million tonnes. Total coal inventory, including stock in transit and at pitheads, is at a record 224 million tonnes, compared with 201 million tonnes in the same period last year. The rise in coal demand reflects expectations of higher electricity consumption and the need to maintain adequate supply during peak periods.

Coal-based plants continue to account for the bulk of baseload power and share in electricity generation, though renewable capacity has expanded. While inventories remain comfortable, the higher demand will require sustained supply, especially during peak summer months and amid the likely absence of about 8-10 GW of gas-based capacity. Peak power demand is expected to reach 271 GW in May-June, higher than 243 GW last year, when favourable weather reduced cooling demand.

India Meteorological Department has forecast above-normal temperatures across most parts of the country until June.


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