Centre Orders 112 Captive Coal Plants to Run at Full Capacity
To prevent power shortages, the Ministry of Power has directed 112 captive coal plants to operate at full capacity from October to December 2026.
In a strategic move to safeguard the nation's power grid, the Union Government has issued a directive to 112 captive coal-based generating stations to operate at their maximum available capacity. This mandate, effective from October 1 to December 31, 2026, aims to preempt a significant surge in electricity demand expected during the final quarter of the year.
The Ministry of Power issued these instructions under Section 11 of the Electricity Act, 2003, highlighting the necessity of maximizing generation availability to stabilize the current demand-supply landscape. By ensuring these plants run at peak performance, the government intends to provide a consistent and adequate supply of electricity to consumers across the country.
Mandatory Surplus Power Sales
The directive is not limited to internal consumption. The Ministry has explicitly stated that these generating units must offer any surplus electricity—the power remaining after meeting their own industrial requirements—to power exchanges. This process must follow all existing market regulations and procedures, ensuring that excess energy is funneled back into the national grid to support wider consumption needs.
"To optimise availability of electricity generation, it is imperative that entire capacity of all the sources of generating electricity including the captive generating plants are utilised to the maximum possible," the Ministry emphasized in its official communication.
Major Industrial Players Under Directives
The order specifically targets captive generating stations with an installed capacity of 50 MW and above. The list of 112 entities includes massive industrial players spanning various critical sectors, such as:
- Steel: Tata Steel, JSW Steel
- Aluminium: Vedanta, Hindalco Industries, NALCO
- Cement: UltraTech Cement
- Petroleum & Chemicals: Indian Oil Corporation, and others in the fertiliser and paper industries.
Strict Monitoring and Fuel Security
To ensure that these directives translate into actual power on the grid, the government has implemented rigorous monitoring and fuel management protocols:
- Coal Stock Management: All generators are required to maintain sufficient coal reserves to prevent any fuel-related interruptions during this critical three-month window.
- Weekly Reporting: Plants must submit detailed weekly reports to the Central Electricity Authority (CEA). These reports must track:
- Total electricity generation
- Captive consumption levels
- Power sold through exchanges or other permitted channels
- Current available capacity
- Existing coal stock levels
These measures will remain in force until the end of December 2026, serving as a buffer against the volatility of power demand and ensuring the stability of the national grid.