Stories
India Mandates Captive Coal Plants to Boost Power Output Amid Surging Demand
- •The Centre has directed 112 captive coal-based generating stations (50 MW and above) to maximize generation from October 1 to December 31 and maintain adequate coal stocks.
- •This directive, issued under Section 11 of the Electricity Act, 2003, is a response to unusually high electricity demand post-summer and pressure on coal inventories.
- •Captive plants, including those owned by Bharat Aluminium, Tata Steel, and Reliance Industries, must offer surplus electricity through power exchanges after meeting their own needs.
- •The order requires weekly data submission to the Central Electricity Authority (CEA) on generation, consumption, sales, capacity, and coal stock to monitor additional power availability and fuel sustainability.
- •The measure addresses a combination of factors: peak power demand reaching near-record levels in September, critically low coal stocks at many plants, and reduced hydropower generation due to deficient rainfall.
Key Questions Answered
The Centre directed 112 captive coal-based generating stations of 50 MW and above to operate to the maximum extent of their available capacity, maintain adequate coal stocks, meet captive requirements, and offer any surplus electricity through power exchanges between October 1 and December 31, 2026.
The government issued the direction under Section 11 of the Electricity Act, 2003, which is an exceptional provision allowing authorities to direct generating companies to operate and maintain generating stations during extraordinary circumstances.
The directive was issued in response to unusually high electricity demand that persisted after summer—such as a record September peak of 269 GW—combined with low coal inventories at numerous power plants and reduced hydropower generation caused by deficient rainfall.
