Coal off-take by the power sector during January 2026 declined on an annual basisdespite severe cold wave conditions fuelling electricity demand, marking the highest January consumption since at least 2010.
According to the Coal Ministry data, off-take of the dry fuel by the Power sector fell by almost 3 per cent Y-o-Y to 73.16 million tonne last month on a provisional basis. During the April-January period in FY26, the off-take fell by 3.72 per cent Y-o-Y to 661.69 mt.
Cumulative off-take across all industries also declined during January 2026 by around 1.4 per cent Y-o-Y to 92.18 mt, dragged down by declining demand from the Power sector.
The sector’s share in overall coal off-take stood at 79 per cent last month compared to 77 per cent in December 2025 and 82 per cent in January 2025. In fact, the sector’s share during December is the lowest in over two years, compared to the record high of 83 per cent in March 2025.
The share of coal in the country’s power generation stood at 74 per cent last month, compared to 76 per cent in January 2025. In December last year, the share was also 74 per cent.
Besides, higher generation from Renewable Energy Sources, hydro and nuclear, an official said, adding that power plants had adequate stock during the month, which also led to lower off-take by thermal power plants (TPPs).
Crisil Intelligence in a commentary pointed out that electricity demand increased by 4.5 per cent Y-o-Y to around 143 billion units (BUs) last month, marking the highest January consumption since at least 2010.
The surge was driven by severe cold wave conditions in northern and eastern regions that increased heating demand during the month. Besides, India’s manufacturing activity continued to expand in January, albeit at a slower pace, it added.
January also saw a peak power demand of 245 gigawatt (GW), surpassing the previous summer peak of 243 GW, which was recorded in June. This could be attributed to a surge in heating demand, as it came during the height of North India’s cold wave on January 9 at 9:52 am, Crisil said.
“Power generation jumped 6 per cent on-year to 156 BUs in January, mirroring the growth in power demand. Fuels across the board saw a rise in generation—a first for the current fiscal,” it noted.
Renewable energy (RE)-based generation increased 10 per cent Y-o-Y, maintaining its streak since April 2025, driven by capacity additions. Similarly, coal-fired generation increased around 5 per cent on-year, Crisil said.
Hydro and nuclear power generation also increased around 11.8 per cent and 5.3 per cent on-year, respectively, during last month, it added.
Coal stocks at TPP end stood at around 53.24 mt on January 1, 2026, rising further to 56.07 mt on January 31, which Crisil Intelligence points out is the highest level of coal stock with the plants since July 2025. Coal inventory stood at 18 days in January 2026, compared with 17 days in December 2025.
Published on February 19, 2026
