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Centre directs captive coal plants to maintain stocks, boost supply | Economy & Policy News


The power ministry has invoked Section 11 of the Electricity Act to issue directions to captive coal-based generating stations of 50 MW and above capacity, mandating them to operate and generate power to the maximum extent of their available capacity.

 

Section 11 empowers the government to direct power-generating companies to operate their plants in accordance with government instructions during extraordinary circumstances.

 

“Considering the prevailing demand-supply scenario and the expected rise in electricity demand in the coming months, the Ministry of Power is undertaking various measures to ensure adequate supply of electricity to consumers,” the ministry said in a notification.

 

It added that, to optimise the availability of electricity generation, it is imperative that the entire capacity of all sources of electricity generation, including captive generating plants, is utilised to the maximum extent.

  

“The generators shall offer their available surplus generation, after meeting their own captive demand, through the power exchanges, in accordance with the applicable market regulations and procedures,” the ministry said.

 

In its directions, applicable from October 1 to December 31, 2026, the ministry has also directed the generators to maintain adequate coal stock to ensure availability of fuel for operations of their plants and enable maximum generation.

 

The generators have been asked to submit a weekly report to the Central Electricity Authority (CEA), indicating generation, captive consumption and sale of power through power exchanges and other permitted avenues, along with details of available capacity and coal stock.

 



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