# India Considers Coal Blending Mandate

> India may require power plants to blend imported coal with domestic supplies to address supply shortages.
- Title: India Considers Coal Blending Mandate · The Economic Times
- Summary: India may require power plants to blend imported coal with domestic supplies to address supply shortages. India plans to mandate power plants blending up to…
- Keywords: india, coal blending, power plants, imported coal, coal supply crunch, power prices, thermal power plants, crisil, Considers, Coal, Blending, Mandate
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/energy/power/india-weighs-mandatory-blending-of-imported-coal-at-power-plants-sources-say/articleshow/134479340.cms
- Author: Reuters
- Published: 2026-09-25T08:03:00+00:00
- Read time: 1 min
- Topics: india, coal blending, power plants, imported coal, coal supply crunch, power prices, thermal power plants, crisil
## India Weighs Coal Blending
India is considering telling power plants to blend imported coal with domestic supplies for the first time since 2024 to ease a supply crunch that has pushed monthly spot power prices to their highest since 2022.
## Global Coal Demand Rises
Higher global coal demand and rising freight costs are set to make imports costlier as Indonesian prices are up about a fifth since May while Russian prices are 14% higher and South African rates are up 19%.
## Blending Plan Details
Under the plan being discussed by officials of the power ministry, thermal power plants would have to blend up to 5% imported coal with domestic coal.
## Reversal in Policy
The plan represents a sharp reversal in New Delhi's drive to boost domestic coal production and curb imports, which helped prune overseas supplies over the past two years.
## Coal Stocks Decline
Coal inventories at power plants have fallen nearly twice as fast as a year before as September electricity demand held at levels seen during India's broiling summer.
## Power Sector Challenges
Nearly 40% of India's coal-fired power plants now hold less than three days of coal stocks, leaving utilities with little cushion as consumption outpaces fresh supplies.
## Key takeaway

India plans to mandate power plants blending up to 5% imported coal to ease supply crunch and rising power prices.