The Indian government has mandated more than 100 captive coal-fired power plants to maximise output through December as the nation grapples with surging electricity needs and fuel shortages, signalling a decisive move to stabilize the power supply during a critical demand period.
India has ordered more than 100 captive coal-fired power plants to lift output to maximum levels from 1 October through the end of December, as the government prepares for a likely increase in electricity demand over the coming months. The power ministry issued the directive under emergency powers in the Electricity Act, according to an order dated 25 September and seen by Reuters, covering plants with an installed capacity of at least 50 megawatts.
The move comes as the power system remains under strain from heavy demand and tight fuel supplies. Data reported by The Economic Times showed that nearly 40 per cent of coal-fired plants were running on critically low stock in September, while peak demand has recently been hovering in the 230-gigawatt to 250-gigawatt range. Earlier this year, the ministry took similar steps to require imported coal-fired stations to run at full capacity, including a March directive that began on 1 April to help avert shortages during the summer peak, when demand was expected to reach about 270 gigawatts.
The latest order extends that approach to 112 captive plants owned by some of India’s largest industrial groups, including Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy. These facilities mainly supply energy-intensive sectors such as aluminium, steel, cement and refining, but the ministry has told operators to sell any surplus power on exchanges. It has also instructed generators to submit weekly reports to the Central Electricity Authority on generation, captive use, power sales, available capacity and coal inventories.
The government has already used the same legal provision repeatedly this year for Tata Power’s imported coal plant in Mundra, Gujarat. Business Standard reported in June that the special directions were extended to 30 September, and separate reporting later indicated the mandate was pushed further to 31 December because of the demand backdrop. The latest order reflects a broader effort by New Delhi to keep supply steady during a period when some policymakers have also been weighing measures such as mandatory blending of imported coal to relieve a squeeze that has helped push spot power prices to their highest since 2022.
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