Business · India Bureau
India directs captive coal plants to maximize output from October
The central government has invoked emergency powers under the Electricity Act to require captive coal-fired power plants to operate at full capacity beginning October 1, citing rising electricity demand and depleted coal reserves at thermal generating stations.
LSN India ·

The Ministry of Power has issued directives requiring captive coal plants across India to run at maximum capacity from the first week of October, as the nation prepares for a seasonal surge in electricity consumption. The move represents an application of emergency provisions contained within the Electricity Act, signalling official concern over the nation's power supply outlook during the coming months.
The directive comes amid persistent challenges at several thermal power stations, where coal inventories have fallen to concerning levels. Plant operators have struggled to maintain adequate stockpiles despite increased domestic coal production, creating potential vulnerabilities in the grid's ability to meet demand during peak consumption periods.
Captive power plants, which are typically owned and operated by industrial enterprises for their own use, represent a significant portion of India's installed generation capacity. The government's decision to mandate full utilization of these facilities underscores the importance of tapping all available generation sources to prevent supply shortages.
The October timeline aligns with the onset of the post-monsoon season, when cooling requirements typically drive electricity demand higher. Officials anticipate that elevated consumption, combined with existing coal constraints, could strain the nation's power infrastructure without additional generation capacity online.