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Govt May Mandate 5% Imported Coal Blending at Thermal Plants to Ease Supply Crunch

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains Medium
26 Sept 2026
~2 min
Source: The Hindu
Key Data:5% imported coal blendingCoal stock decline ~49% in 3 months~40% plants with <3 days stocksSpot power price ₹7.71/unit (Sept 2026)Indonesian coal prices up ~20% since MayRussian prices up 14%
Bodies:Ministry of PowerMinistry of CoalCrisil
Practice MCQs from today's news ▸
What This Article Covers

1.India may mandate up to 5% imported coal blending at thermal plants, first such directive since 2024.

2.Coal stocks at power plants have fallen ~49% in three months; ~40% of plants hold less than 3 days of stocks.

3.Spot power prices averaged ₹7.71/unit in September 2026, highest monthly level since 2022.

The Big Picture
Prelims · HighMains · Medium

India is considering mandating thermal power plants to blend up to 5% imported coal with domestic coal to address a supply crunch that has driven spot power prices to a four-year high. This marks a reversal of the government's push to curb imports and boost domestic coal production, with coal stocks at plants falling nearly 49% in the last three months.

Exam Lens

Quick Exam Facts From News

Blending percentageUp to 5% imported coal
Coal stock decline (3 months)~49% (vs 26% year-ago)
Plants with <3 days stocks~40%
Spot power price (Sept 2026 avg)₹7.71 per unit
Indonesian coal price rise since May~20% (a fifth)
Russian price rise14%
South African price rise19%
Renewable generation growth (YoY)~21%

1-Minute Revision

  • ›Blending percentage: Up to 5% imported coal
  • ›Coal stock decline (3 months): ~49% (vs 26% year-ago)
  • ›Target this Data: Up to 5% imported coal blending; coal stock decline ~49% in 3 months; spot power price ₹7.71/unit (Sept 2026)
  • ›Target this Nodal Body: Ministry of Power (Government of India)
  • ›Target this Legal Point: No specific act/article; focus on policy directive (executive action)

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for the proposed coal blending directive mentioned in the news?

Q2Statement-basedHard

Consider the following statements regarding the coal blending plan:

1. The proposed blending percentage is up to 5% imported coal with domestic coal.

2. The previous coal-blending directives ran from December 2021 to March 2024.

3. The plan aims to increase coal exports to boost foreign exchange.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What was the average spot power price in September 2026, as mentioned in the article?

Q4Application/ImpactMedium

What is the primary objective of the proposed mandatory coal blending plan?

All 20 MCQs ▸
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