Coal India maintains 168 MT coal buffer as summer demand rises

Coal India has assured adequate coal supply to meet the rising summer energy demand, maintaining a total system buffer of 168 million tonnes (MT). This assurance comes despite a sharp increase in daily coal consumption by the country's thermal power plants. The company emphasized that the compression of stock levels at coal-fired plants during peak summer is a natural occurrence rather than a supply-side crisis.

Inventory Levels

As of May 23, coal stocks at domestic coal-based plants stood at 47.6 MT. The coal inventory at Coal India's own mine heads was at a comfortable level of 113.5 MT as of May 24, which is 10% higher year-on-year and sufficient to meet 19 days of consumption. Additionally, around 3 MT of coal is awaiting at transit points such as goods sheds, private washeries, and ports.

The following table summarizes the key coal inventory data:

Parameter	Details
Total Coal Buffer (System):	168 MT
Power Plant Stocks (as on May 23):	47.6 MT
Mine Head Stocks (as on May 24):	113.5 MT
Coal in Transit (Rakes on Run):	4 MT
Transit Points Stocks:	3 MT

Supply Preparedness

Beyond the current buffer, there is approximately 50 MT of in-situ mine coal available for quicker extraction and supply if demand necessitates. Coal India has been actively corresponding with power plants to build up their stocks in advance for peak demand periods, particularly for plants located at difficult logistic points. Of the 21 plants categorized under criticality as of May 20, 11 are domestic coal-based plants, of which 7 source their coal from Coal India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.15%	+1.14%	-2.34%	+17.13%	+15.61%	+208.27%

Coal India Limited has disclosed that the Alternative Mechanism (AM), processed by DIPAM/MoC, has granted approval for the listing of its subsidiary Mahanadi Coalfields Limited (MCL) through a public offering in the domestic market. The approval follows resolutions accorded by the Boards of both Coal India Limited (CIL) and MCL, and is in accordance with SEBI rules and regulations. The disclosure was made via a regulatory filing dated 15.05.2026.

Key Provisions of the AM Approval

The AM has approved the disinvestment and listing of MCL under a structured framework. The following table summarises the key provisions of the approval:

Parameter:	Details
Listing Entity:	Mahanadi Coalfields Limited (MCL)
Disinvestment Method:	Offer for Sale (OFS) of existing CIL shares in MCL as part of IPO, and subsequently in one or more tranches
Capital Raising Method:	Fresh issue of equity shares via IPO and/or subsequent FPO(s), QIP(s), or other SEBI-approved methods
Maximum Disinvestment Extent:	Up to 25% reduction in CIL's shareholding in MCL
Market:	Domestic market
Regulatory Framework:	SEBI Rules and Regulations

Structure of the Proposed Listing

The AM approval outlines a flexible structure for the disinvestment and capital-raising exercise. The disinvestment and capital raising may be undertaken simultaneously or separately, in one or more tranches, providing operational flexibility in execution. CIL may divest its stake in MCL through an OFS of existing shares as part of the MCL IPO, with the option to undertake further disinvestment in subsequent tranches. Concurrently, MCL may raise fresh capital through the IPO and/or through follow-on mechanisms including FPOs, QIPs, or other SEBI-approved routes. The overall extent of disinvestment and capital raising under all mechanisms combined shall be limited to reducing CIL's shareholding in MCL by up to 25%.

Conditions and Regulatory Compliance

The proposed listing of MCL is not unconditional. It shall remain subject to prevailing market conditions and the completion of all necessary statutory and regulatory formalities. The filing was submitted to both the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited by B. P. Dubey, Executive Director (Company Secretary) and Compliance Officer of Coal India Limited, on 15.05.2026.