Coal supplies to domestic coal-based power plants have increased in the first week of October due to elevated power demand and increased coal consumption. According to data from the Central Electricity Authority (CEA), on October 4th, thermal power plants consumed 23.17 lakh tonnes of coal, while a total of 18.02 lakh tonnes of coal was received, resulting in a supply gap of 5.15 lakh tonnes. This gap was mainly filled by reserve stocks and imported coal, with 93,000 tonnes of imported coal used. In contrast, on October 1st, when consumption was 21.63 lakh tonnes, the gap was 2.25 lakh tonnes, with a supply of 19.38 million tonnes. The average daily supply gap in the first four days of October was 3.34 lakh tonnes, compared to an average gap of 2.87 lakh tonnes in September. Currently, coal stocks at thermal power plants are sufficient for just over 8 days, down from nearly 10 days at the end of September. In March, stocks were adequate for 13 days. The high power demand in August and September, driven by dry spells and sporadic monsoons, has contributed to this situation, with power demand in September rising 10.7% year-on-year.

Peak power demand reached record highs in August and early September, although it has since eased slightly with cooler temperatures. Nevertheless, it remains elevated, standing at 203.44 GW in October with a peak shortage of 2.95 GW. To address the rising demand and coal supply gap, the Indian government has mandated domestic coal-based power plants to blend 4% imported coal until March next year. Additionally, imported coal-based (ICB) power plants have been directed to operate at full capacity until the end of October. The coal ministry reported a substantial surge in overall coal production in September 2023, with a 15.81% increase compared to the same month the previous year. Coal India Limited (CIL) also saw a production increase of 12.63% in September 2023 compared to September 2022. Cumulative coal production for the fiscal year 2023-24 has grown by 12.06% compared to the previous fiscal year.