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5 September 2026

Thermal power coal stock management

The topic discusses the revised SHAKTI policy and CEA coal stocking norms, which are specific government interventions and policy frameworks directly relevant to India's energy security and industrial infrastructure.

1 min read Day 6 of 6 2 questions 1 prelims

Notes

  • Thermal power sector faces a dilemma where generators maintaining adequate coal stocks are disadvantaged when supplies are diverted to plants with low stocks.
  • Current CEA coal stocking norms have been in effect since December 6, 2021, to strengthen fuel security.
  • Revised SHAKTI policy (May 2025) streamlines coal-linkage into two windows: Window I for central/state utilities at notified prices, and Window II for other producers via auctions.
  • Coal supply chain involves complex logistics: production, loading, railway availability, transit, unloading, and stockyard management.
  • Coal production in India exceeded 1 billion tonnes in FY2024-25 (1,047.52 MT) and FY2025-26 (1,040.08 MT).
  • Cumulative coal production through July of the current financial year is 302.04 MT, with dispatches up 6% year-on-year to 354.7 MT.
  • Total coal stock (plant + pithead + transit) is approximately 148 MT, suggesting the challenge is logistical and allocative rather than a national shortage.
  • Industry experts suggest coal inventory should be treated as a system reliability service, with incentives for maintaining normative stocks and consequences for mismanagement.

Part of a longer story

This is day 6 of 6 in India's Renewable Energy Transition, which has been running since 29 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Critically analyze the challenges in coal supply chain management for the thermal power sector in India. How can the government balance emergency redistribution with the need to incentivize efficient inventory management? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Despite record-breaking coal production, India’s thermal power plants frequently face fuel security concerns. Discuss the role of the SHAKTI policy and the Central Electricity Authority (CEA) norms in ensuring grid stability and efficient fuel allocation. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Under the revised SHAKTI policy, which of the following is true regarding coal-linkage allocation?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-05/thermal-power-coal-stock-management