India Orders 112 Captive Coal Plants to Maximise Power Output
The Power Ministry has directed captive coal-fired plants of at least 50 MW capacity to maximise generation from October 1 through December 31 as electricity demand rises and fuel stocks remain critically low at many plants.
India has ordered 112 captive coal-fired power plants to operate at maximum capacity from October 1 through the end of 2026, as the government prepares for an expected increase in electricity demand over the coming months.
The Power Ministry issued the order on September 25 under Section 11 of the Electricity Act, 2003, which allows the government in extraordinary circumstances to direct generating companies on the operation of power stations.
The directive applies to captive coal-fired plants with an installed capacity of at least 50 megawatts.
POWER ORDER AT A GLANCE
112 plants — Covered by the directive
50 MW or above — Minimum installed capacity
October 1–December 31 — Period covered
Section 11 — Emergency provision invoked under the Electricity Act
Captive power plants primarily generate electricity for their owners' industrial operations, including aluminium smelters, steel manufacturing facilities, cement plants and oil refineries.
The order covers plants associated with major companies including Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy.
Generators covered by the directive have also been instructed to offer surplus electricity through power exchanges, potentially making additional power available to the wider electricity market.
The ministry has directed the plants to submit weekly reports to the Central Electricity Authority (CEA) detailing their electricity generation, captive consumption, power sales, available capacity and coal stocks.
The intervention comes as coal inventories remain under pressure across India's thermal power system.
Nearly 40% of India's coal-fired power plants are operating with critically low fuel stocks, according to government data reported by Reuters, following a surge in electricity demand amid hotter-than-usual conditions linked to El Niño.
KEY PRESSURE POINT
Nearly 40% of coal-fired power plants are operating with critically low fuel inventories as higher electricity consumption puts pressure on coal supplies.
The captive plants affected by the latest order are important to energy-intensive industries, but maximising their generation and offering available surplus power to exchanges could also increase supply available to states and other buyers.
The government has separately extended an earlier emergency direction for Tata Power's imported-coal-fired Mundra plant in Gujarat to operate at full capacity until December 31.
The Mundra facility has an installed capacity of 4,000 MW and has previously been directed to operate under the special provisions as the government sought additional thermal generation to meet electricity requirements.
Electricity consumption has risen sharply in September. The Economic Times reported that consumption was up by more than 14% during the month, driven by cooling and irrigation demand amid a deficient monsoon, while peak demand exceeded the projected 271 GW level.
Higher demand has also placed pressure on electricity-market prices, particularly during non-solar hours when thermal generation plays a larger role in meeting demand.
Under the latest directive, captive generators will also be required to maintain adequate coal stocks to support continued operation and maximum generation during the three-month period.
The measure represents a significant government intervention in captive power generation as India seeks to maintain reliable electricity supplies while navigating elevated demand and tight coal inventories.