India Directs 112 Captive Coal Plants to Run at Full Capacity Till December

India has directed more than 100 captive coal-fired power plants to run at maximum capacity from October 1 through the end of the year, as authorities brace for a further rise in electricity demand.

The federal power ministry's order, issued on September 25 under emergency provisions of the Electricity Act, applies to captive plants with an installed capacity of at least 50 megawatts. It covers 112 plants operated by companies including Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy.

These plants primarily serve industrial facilities such as 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 amid mounting pressure on fuel supplies. Nearly 40% of coal-fired plants are running with critically low stock, a situation attributed to a surge in power demand as the El Niño climate phenomenon pushes temperatures above usual levels.

Under the order, plants must report weekly to the Central Electricity Authority, detailing generation, captive consumption, power sales, available capacity and coal stocks.

Separately, the ministry has extended an earlier emergency order requiring Tata Power's imported coal-fired plant in Mundra, Gujarat, to operate at full capacity until December 31, citing the demand situation.

Section 11 of the Electricity Act permits the government, under extraordinary circumstances, to direct generators to operate power stations in line with its instructions.