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Punjab's Power Plants Have Sufficient Coal Supplies, Ministry Asserts

India's coal ministry has assured that thermal power generation facilities in Punjab have adequate fuel supplies to meet current demand. The assurance comes despite underutilization of allocated coal quantities by independent power producers in the state.

LSN India · 13 September 2026

The Ministry of Coal has stated that coal availability for Punjab's power generation sector remains sufficient to support ongoing operations. The ministry's position addresses concerns about fuel security for the state's thermal power plants amid fluctuating demand patterns.

Coal India Limited (CIL), the nation's primary coal producer, has extended offers of additional coal supplies to Punjab's independent power producers (IPPs) beyond standard allocations. This move is intended to ensure no shortage of fuel for power generation in the state.

However, data indicates a gap between available supplies and actual consumption. IPPs operating in Punjab have not fully utilized the coal quantities allocated to them, with both booking and lifting of coal remaining below allocated levels. Industry observers suggest this shortfall reflects current demand dynamics and operational considerations rather than supply constraints.

The ministry's assurance comes as India works to bolster coal supplies across its power sector amid national energy demand. Punjab's thermal power plants continue to represent a significant component of the state's electricity generation infrastructure, making stable fuel supply critical for grid stability and power availability to consumers.