Coal output rises 4.5%, enough stocks for power plant, says G Kishan Reddy
Union Coal Minister G Kishan Reddy on Tuesday said India has witnessed 4.5 per cent year-on-year growth in dry fuel production and assured that there is no need to worry about the stocks for power plants.
However, he admitted that there were issues related to coal production due to weather conditions (monsoon) for around ten days, but now there is no problem.
“We have 123 million tonnes of coal available with us, which is (sufficient) for 51 days (reserve) in the country. Therefore, there is no problem with power plants having critical coal stock,” he said on the sidelines of Coal India’s CSR Initiative event.
About the coal gasification scheme, the minister told reporters that September 7 was the last day to submit bid and as many as seven applications were received.
According to a Coal Ministry statement issued on Tuesday, bids were submitted by NTPC, Adani Enterprises, Talcher Fertilisers, Gallantt Ispat and Shyam Sel & Power.
He also informed that the coal companies have 100 million tonnes of coal in transit, and power companies have 23 days of coal stock. The production of coal has increased with a reduction in rains in the country, he added.
There is no need to worry about coal stock in the country as the ministry is monitoring the situation, along with dry fuel firms, Reddy noted.
Coal production can be increased further if the weather continues to be favourable. There is growth of 4.5 per cent in coal production so far compared to last year, the minister said.
However, according to the latest report by the Central Electricity Authority on coal stocks at power plants, there are 58 plants with a critical stock situation.
These 58 plants include 53 (domestic coal based), four imported coal-based plants and one plan based on washery rejects. Thermal power plants are shown as critical (in the report) if coal stock is less than 25 per cent of normative coal stock.
The round 1 of the Rs 37,500-crore Scheme for Promotion of Surface Coal/Lignite Gasification Projects has closed with an overwhelming response from industry, with seven (7) applications received from some of India’s largest corporate houses and premier public sector undertakings, decisively vindicating the Ministry of Coal’s confidence in the scheme, the statement said.
The response underscores growing industry confidence in coal gasification as a key pillar of India’s energy security, import substitution and industrial development strategy, it stated.
A request for proposal was issued on July 7, 2026.
These projects have the potential to contribute significantly to the development of a robust domestic coal gasification ecosystem, with eight gasification projects already under implementation under the earlier Rs 8,500 crore Financial Incentive Scheme.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Cabinet on May 13, 2026, with a total financial outlay of Rs 37,500 crore.
