India Weighs Mandatory Imported Coal Blending at Power Plants
India is considering requiring power plants to blend imported coal with domestic supplies for the first time since 2024, according to three government sources cited by Reuters. Under the proposal being discussed by the power ministry, thermal power plants could be required to blend up to 5% imported coal with domestic coal as falling inventories raise concerns about supply shortages.
Coal stocks at Indian power plants declined nearly 49% in the three months to September, compared with a 26% fall during the same period last year. Nearly 40% of coal-fired power plants now have less than three days of coal stocks. Meanwhile, India’s coal imports have reached a 15-month high, while higher global demand and freight costs are expected to make overseas supplies more expensive.
The potential move comes as power demand remains elevated, while a weak monsoon has reduced hydropower generation and heavy rainfall has disrupted coal mining in parts of eastern India. Limited rail capacity has also slowed coal deliveries to power plants. The supply crunch has pushed India’s average spot power price to 7.71 rupees per unit so far in September, the highest monthly level since 2022, according to data cited by Reuters.
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