Fuel security is critical for coal-fired thermal power plants, impacting their operational reliability, cost-effectiveness, and environmental compliance. With coal costs accounting for 75–80% of monthly operating expenses, efficient fuel management strategies are paramount. The rising cost of coal and stricter statutory regulations necessitate an approach that balances economic and sustainable goals. This study presents a comprehensive framework for optimizing coal supply chains, storage management, and blending practices to improve plant performance. Effective storage management is essential to minimize calorific value loss, oxidation, and the risks of spontaneous combustion. Advanced coal blending techniques can enhance fuel quality consistency, combustion efficiency, and reduce specific coal consumption. The integration of real-time monitoring systems, such as thermal imaging for hot zone detection in coal stockpiles, and predictive analytics-based frameworks for blending optimization are explored. These technologies enable proactive management of fuel resources, leading to significant reductions in operational costs and carbon footprints. A cost-benefit analysis highlights the economic and environmental advantages of adopting these practices. Mitigating coal losses and improving its utilization not only ensures reliable power generation but also aligns with sustainable development goals. The proposed strategies provide actionable insights into balancing operational efficiency and environmental responsibility. This study offers a roadmap for enhancing coal-fired power plant operations through innovative technologies, optimized processes, and regulatory compliance, contributing to a resilient and sustainable energy future.