New Delhi: The Union Power Ministry has ordered 112 captive coal-fired power plants with capacities of at least 50 MW to operate at maximum generation from 1 October to 31 December, citing an expected rise in electricity demand in the coming months.
What the order says
The directive, issued under emergency provisions of the Electricity Act, covers captive units that primarily supply electricity to industrial establishments such as aluminium smelters, steel plants, cement factories and oil refineries. The ministry has invoked powers under Section 11 of the Act to require these generators to run in accordance with government instructions.
- Timeframe: 1 October–31 December.
- Scope: 112 captive coal plants, each of at least 50 MW installed capacity.
- Compliance: Plants must report weekly to the Central Electricity Authority on generation, captive use, power sold, available capacity and coal inventories.
- Market action: Generators are directed to sell surplus electricity via power exchanges.
Companies named in the order
The order applies to plants linked to several major industrial groups. The list includes units belonging to Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy.
| Item | Details |
|---|---|
| Number of plants | 112 captive coal-fired units (≥50 MW) |
| Period | 1 Oct–31 Dec |
| Reporting | Weekly to Central Electricity Authority |
Why the government has acted
The ministry said the step responds to an anticipated uplift in demand. Reuters reporting cited the order and noted that close to 40% of coal-fired stations were running with critically low coal stocks amid a surge in consumption linked to an El Niño-driven rise in temperatures. The government has therefore sought to boost available generating capacity by mobilising captive capacity that normally serves industrial consumers.
In a related measure, the ministry has extended an earlier emergency direction requiring Tata Power’s imported coal-fired plant at Mundra in Gujarat to operate at full capacity until 31 December, reflecting concerns over adequacy of supplies over the peak demand season.
What it means for industry and consumers
For industries that own captive plants, the order will change operational priorities: units that normally supply captive demand must maximise generation and report detailed operational and coal stock data to the Central Electricity Authority. Companies will also be expected to channel any surplus into the power market through exchanges, potentially raising short-term availability of grid power.
For consumers and the grid, the directive is aimed at shoring up generation to reduce the risk of shortages or higher spot prices during hotter months. The move could ease stress on distribution companies and help moderate price spikes in the short term, although it relies on captive generators having adequate coal supplies and logistics to sustain higher runs.
Regulatory experts note that directions under Section 11 are used when the government judges extraordinary circumstances require central coordination of generation. The success of this order will depend on coal availability, transmission capacity and the ability of plants to balance captive needs with supplies to the market.
Distribution and market monitoring will be tightened: weekly reports to the Central Electricity Authority are intended to provide near real-time visibility on generation, captive consumption and coal stocks so that authorities can intervene if shortfalls emerge.
No estimate of additional megawatts expected from the order was provided in the government note reported by Reuters. The exact mix of plants and their aggregated capacity will determine how much incremental power reaches the grid.
This instruction follows a pattern of episodic government interventions using statutory powers to manage supply during peak demand periods or when fuel shortages threaten reliability. Authorities will be watching coal stock levels and dispatches closely over the coming weeks.
