Coal India Limited has positioned itself to address rising summer power demand through a comprehensive three-layer buffer system, ensuring adequate coal availability across the domestic supply chain. The company's strategic approach involves maintaining substantial coal inventories at multiple points to prevent potential shortages during peak demand periods.

Strategic Coal Buffer System

The three-layer buffer system encompasses coal inventory at CIL's pitheads, coal stocks at thermal power plants, and ready-to-extract in-situ coal exposure in CIL's mines. This multi-tiered approach provides operational flexibility and supply security as power demand increases.

Record-High Power Plant Inventories

Coal stocks at domestic coal-based power plants reached nearly 55 million tonnes as of February 25, representing the highest level recorded for this period. This substantial inventory provides immediate supply security for power generation requirements during anticipated demand increases.

The transit stock component includes 5.50 million tonnes distributed across goods sheds, washeries, and ports, ensuring continuous supply chain flow and reducing potential bottlenecks in coal distribution.

Ready-to-Extract Coal Reserves

CIL maintains significant operational readiness through in-situ coal exposure at key mining operations. The company reported 60.20 million tonnes of exposed coal ready for extraction at mines contributing to 90% of CIL's total annual output, measured at the end of the first fortnight of February 2026.

This exposed coal represents large quantities already uncovered through overburden removal, enabling rapid extraction and supply response to market demands at short notice.

Market Implications and Import Considerations

The substantial domestic coal availability positions CIL to potentially reduce coal import dependency while addressing market demand fluctuations. International coal prices demonstrated an upward trend as of February 2026, making domestic coal supply increasingly valuable for cost management.

A senior CIL official emphasized that the cumulative quantity across pithead stock, plant stock at domestic coal-based thermal power stations, and exposed in-situ coal provides strong operational assurance for meeting demand variations across power and other industrial sectors.

Coal India 's subsidiary South Eastern Coalfields Limited (SECL) has made a significant discovery by identifying seven mine dumps suitable for rare earth element exploration. This development marks an important step in the company's efforts to diversify its operations beyond traditional coal mining activities.

Strategic Diversification Initiative

The identification of these seven mine dumps represents a strategic move by Coal India to explore new business opportunities in the critical minerals sector. Rare earth elements are essential materials used in various high-technology applications, making them increasingly valuable in today's economy.

Potential Business Impact

This discovery could potentially create new revenue streams for Coal India, complementing its core coal mining operations. The exploration of rare earth elements from existing mine dumps also presents an environmentally conscious approach to resource extraction, as it involves utilizing previously disturbed areas rather than developing new mining sites.

Industry Significance

Rare earth elements play a crucial role in manufacturing components for electronics, renewable energy systems, electric vehicles, and defense equipment. The growing demand for these materials, particularly in the context of India's push toward renewable energy and technological advancement, makes this discovery particularly relevant for Coal India's long-term growth strategy.

The company's move into rare earth exploration aligns with broader industry trends where traditional mining companies are seeking to diversify their portfolios to include critical minerals that are essential for modern technology and green energy transitions.