---
title: "Karnataka Boosts Coal Stocks Amid Soaring Power Demand"
url: https://projectchintan.com/article/karnataka-boosts-coal-stocks-power-demand-surge-f3ebt
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-14T18:00:43.313Z
modified: 2026-08-14T19:34:06.808Z
language: en-IN
---

# Karnataka Boosts Coal Stocks Amid Soaring Power Demand

Karnataka is increasing coal reserves to meet a surge in daily power demand, which has risen significantly from last year. Challenges include maintenance at thermal units and difficulties with coal transportation due to rain.

## Key takeaways

- Karnataka's daily power demand has risen to between 310 and 350 million units, up from 200 million units last August.
- Hydropower generation is insufficient due to poor rainfall, prompting a focus on thermal power.
- Three thermal units are under maintenance, impacting current generation capacity.
- Coal transportation is hindered by rain accumulation in mines and wet coal during transit.
- Karnataka aims to increase its coal stock to 15-18 days' supply, securing commitments from Coal India and the Railways.

Karnataka is taking steps to secure its thermal power supply as daily electricity demand has climbed substantially. The state's power consumption has risen to a range of 310 to 350 million units (MU) per day, a notable increase from approximately 200 MU daily in August of the previous year. Hydropower generation alone is insufficient to meet this heightened demand, primarily due to a lack of adequate rainfall.

Karnataka Power Corporation Limited (KPCL) aims to boost thermal power generation to around 100 MU daily. The corporation has set an annual target of generating 29,500 MU of thermal power. However, operational challenges persist, including three thermal units currently undergoing maintenance. Additionally, heavy rainfall has led to water accumulation in coal mines and made coal transportation from other states difficult, impacting loading and unloading operations.

The state's thermal power stations have an installed capacity of 5,020 MW across the Raichur, Yermarus, and Ballari facilities. Currently, approximately 3,910 MW of this capacity is available, with three units offline for maintenance. An 800 MW unit at the Yermarus Thermal Power Station is scheduled to resume operations on August 24, and a 210 MW unit at the Raichur Thermal Power Station is expected back online by August 31. These restorations are anticipated to increase available generation capacity to about 4,810 MW by the end of August.

Last year, KPCL generated 15,509 MU of hydropower and 21,693 MU of thermal power. This year, through July, hydropower generation reached 3,480 MU. The current stored water reserves represent an additional potential of 4,585 MU of hydropower. With favorable rainfall in August and September, the total potential hydropower generation could reach approximately 10,000 MU.

KPCL is working to increase its coal stock to a 15 to 18-day supply, from the current approximately 15 days' worth, which equates to around 6.5 lakh metric tonnes. The daily coal requirement is approximately 44,000 metric tonnes, with 50,000 metric tonnes currently being received each day. Coal India Limited has committed to supplying coal according to Karnataka's needs. The Railways will allocate the necessary number of empty railcars for coal transportation. KPCL also plans to increase coal extraction from its Baranj Captive Coal Mine in Nagpur, Maharashtra, to enhance fuel security.

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Canonical: https://projectchintan.com/article/karnataka-boosts-coal-stocks-power-demand-surge-f3ebt
Reported from: Multiple Sources