India has ordered 112 captive coal-fired power plants to operate at maximum capacity from October 1 through the end of December, citing an expected increase in electricity demand in the coming months. The directive was issued by the federal power ministry under emergency provisions of the Electricity Act and applies to plants with installed capacity of at least 50 megawatts.
The order, dated September 25, requires the plants to maximise generation even though much of their output is normally used by the industrial facilities that own them. The plants primarily supply electricity to aluminium smelters, steel manufacturers, cement factories and oil refineries. The ministry has also instructed generators to sell any surplus electricity through power exchanges.
The directive comes as India’s electricity system faces pressure from increased demand and limited coal inventories. Nearly 40% of the country’s coal-fired power plants are operating with critically low fuel stocks, according to data cited by Reuters. Power demand has surged as the El Niño climate phenomenon has contributed to higher-than-usual temperatures.
The 112 plants covered by the order belong to major industrial companies, including Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy.
The government has imposed detailed reporting requirements alongside the production order. The affected generators must submit weekly information to the Central Electricity Authority covering electricity generation, their own captive consumption, power sold through the market, available generating capacity and coal stocks.
The decision reflects the government’s use of emergency powers to manage electricity supply during periods of exceptional demand. Section 11 of the Electricity Act permits the government, under extraordinary circumstances, to direct electricity generators to operate their power stations according to government instructions.
The ministry has also extended a separate emergency directive involving Tata Power’s imported coal-fired plant at Mundra in Gujarat. The plant has been ordered to continue operating at full capacity until December 31, with the ministry again citing the prevailing electricity demand situation.
The measures place additional emphasis on captive generation, which normally allows industrial companies to produce electricity primarily for their own operations. By requiring the plants to maximise output and make surplus electricity available through power exchanges, the government is seeking to increase electricity available to the wider market during the period of anticipated higher demand.
The orders come as the authorities balance rising electricity consumption against the availability of coal, the main fuel for the affected plants. The requirement for weekly reporting on both generation and coal inventories will give the Central Electricity Authority information on the plants’ ability to sustain increased production through the end of the year.
