By Sadananda Mohapatra, Senior Business Journalist
India’s Coal Plants Have Adequate Stocks. Some of That Coal Is Russian.
On July 20, Minister of State for Power Shripad Naik told the Rajya Sabha that coal stocks at India’s thermal power plants stood at 42.8 million tonnes — sufficient for 14 days of operation at 85% plant load factor. Coal and lignite contributed 69.54% of total electricity generated between April and June 2026, rising to roughly 75% during non-solar peak demand hours. The message was clear: India’s coal supply is stable, its thermal fleet is running, and there is no shortage. What the statement did not mention is where some of that coal is coming from.
Well it’s a no brainer. Russia has displaced Australia as India’s second largest coal supplier in June 2026. India imported 3.16 million tonnes of Russian coal in June, 51% above the average for the three months before the Iran conflict began. May was a record at 3.76 million tonnes. Since December 2022, India has absorbed 19% of all Russian coal exports — nearly one fifth of Moscow’s entire seaborne coal trade — making it the second largest buyer of Russian coal globally after China, according to Centre for Research on Energy and Clean Air data published earlier this month.
Most Indian coal carries a calorific value of 4,000-5,500 kcal per kilogram, with high ash content that creates combustion inefficiencies in many power plants. Russian thermal coal typically offers 5,500-6,500 kcal per kilogram with lower ash, making it significantly more efficient for coastal plants in Gujarat, Maharashtra and Tamil Nadu. Russian coal arrives by ship directly at western ports such as Mundra, bypassing the chronic rail logistics bottleneck that makes eastern Indian coal expensive and slow to reach western industrial hubs. Add a post-sanctions price discount and the commercial case assembles itself.
The metallurgical coal dimension adds further weight. Australia remains the largest met coal supplier, but Russia is closing the gap, with Indian met coal imports from Russia running well above pre-conflict averages.
The government’s coal supply narrative is not wrong. Stocks are adequate. Plants are running. The inter-ministerial committee of the Railway Board, Ministry of Coal and Ministry of Power is monitoring daily dispatch. Domestic production hit a near three-year high in June. All of that is accurate. But domestic production and Russian imports are both rising simultaneously — which tells you that domestic coal alone is not bridging the quality gap that a 230.8 GW thermal fleet and a fast-growing steel sector together demand.
India needs the coal. Russia needs the market. Since December 2022, Western sanctions have closed most of Moscow’s traditional coal customers. India has quietly filled that gap, absorbing nearly a fifth of Russian coal exports without fanfare and without a formal policy position on the matter. The adequacy of stocks at India’s thermal plants is not in question. The provenance of those stocks is a conversation that has not yet begun.
Joules Capsule
Quick reads from the world of energy this week
India Opens Registrations for Its First Regulated Coal Exchanges
Union Minister of Coal G. Kishan Reddy launched the online registration portal for India’s first regulated coal exchanges on July 15, during Indian Mining Week 2026. Enabled by the Mines and Minerals (Development and Regulation) Amendment Act, 2025 and governed by the Coal Exchange Rules, 2026, the exchanges will allow buyers and sellers to transact through delivery-based contracts on a regulated platform, with market-based price discovery and a secured clearing and settlement mechanism. The Coal Controller Organisation will oversee registrations, valid for 25 years. The launch marks India’s shift from administered coal allocation toward a competitive, transparent market structure.
India Has 15,870 MW of Pumped Storage Under Construction
India currently has 11 pumped storage projects totalling 15,870 MW under construction, with commissioning targets ranging from December 2026 to December 2029, Minister of State for Power Shripad Naik told the Rajya Sabha on July 20. A further six projects totalling 8,140 MW have received Central Electricity Authority concurrence and are awaiting construction start, including a 600 MW project by Odisha Hydro Power Corporation. Maharashtra leads with 7,000 MW across four projects under construction. Key enablers include a 100% waiver of inter-state transmission charges for projects commissioned before June 2028 and a streamlined DPR concurrence timeline reduced from 90 to 50 days.
Clean Energy Briefly Crossed 50% of India’s Daytime Generation in Early July
Renewable energy sources including solar, wind, hydro and nuclear briefly crossed 50% of India’s daytime electricity demand in early July, a threshold reflecting the scale of capacity added over the past three years. Daily renewable generation rose steadily between July 7 and 13, with solar and wind together climbing from 1,098 MU to 1,411 MU over the week. The milestone carries an important qualifier: coal remained dominant during evening peak hours as hydro recovery stayed gradual despite widespread monsoon rainfall. The daytime figure signals a genuine directional shift. The evening and overnight grid still runs on coal.
About the Author:
Sadananda Mohapatra is a veteran business journalist with decades of experience covering India’s energy, industry, and economic landscape. With stints at reputed financial news publications like The Business Standard & NewsWire18, he reported extensively on India’s power sector, minerals policy, coal and energy regulation, and industrial developments — building a deep, ground-level understanding of the global energy economy. His work spans corporate affairs, infrastructure, and policy analysis, with a particular focus on eastern India’s resource-rich industrial corridor. He currently writes on the global energy landscape through his newsletter, The Joule’s Stack.
