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Indian Railways to Boost Coal Transport Amid Rising Power Demand
Apr 03, 2025
As India prepares for an unusually hot summer, the Railway Ministry plans to increase coal transportation to meet the rising power demand. The average number of coal rakes deployed daily is expected to rise to 470 in FY26, up from 440 last year. Currently, around 415 rakes transport coal daily for power generation, and the government anticipates a further increase due to higher electricity consumption.
One rake consists of several wagons and can carry around 4,000 tonnes of coal. Given that domestic coal-based power plants will require 90.61 crore tonnes of coal in FY26, compared to 87.4 crore tonnes in FY25, this logistical boost is crucial. The Central Electricity Authority (CEA) has projected peak power demand to reach 270 GW this summer, a significant rise from last year's 250 GW.
The Ministries of Power, Coal, and Railways, along with Coal India Ltd (CIL) and Singareni Collieries Co. Ltd (SCCL), are coordinating efforts to ensure a stable coal supply. Coal stock at domestic power plants stood at 5.44 crore tonnes as of March 31, 15% higher than last year, enough for 19 days of operations.
The India Meteorological Department (IMD) has warned of above-normal temperatures and increased heatwave days across multiple states, further driving electricity demand, particularly for cooling. While India is pushing for a renewable energy transition, coal continues to supply over 70% of the country’s electricity needs.
The government is making proactive efforts to expand thermal power capacity and avoid shortages like the October 2021 coal crisis, ensuring energy security amid rising demand.