Captive Coal Plants to Boost Power Output

India has ordered 112 captive coal-fired power plants to operate at full capacity from October 1 through December 31 to meet an expected rise in electricity demand. The Ministry of Power issued the directive under emergency provisions of the Electricity Act in an order dated September 25.

The order applies to captive plants with installed capacity of at least 50 MW. Such facilities primarily supply electricity to industrial users, including aluminium, steel, cement and oil-refining companies. Generators have also been instructed to sell surplus electricity through power exchanges, allowing additional supply to reach the wider market.

The plants covered by the directive include facilities owned by Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy. Operators must submit weekly reports to the Central Electricity Authority covering generation, captive consumption, electricity sales, available capacity and coal stocks.

Separately, the ministry has extended until December 31 an earlier emergency order requiring Tata Power’s imported coal-fired plant at Mundra in Gujarat to operate at full capacity. The plant was previously directed to maintain maximum generation to support the electricity system during periods of tight supply.

Government data indicates that nearly 40 per cent of India’s coal-fired power plants have critically low fuel stocks. The deterioration has followed a surge in electricity demand amid hotter-than-usual weather associated with El Niño, increasing pressure on generators to maintain output and secure adequate coal supplies. The latest directive is intended to mobilise captive generation and make surplus electricity available through market channels during the high-demand period.

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