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Captive coal power units to boost grid supply ahead of year‑end peak demand

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News Analysis IndiaReporter
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September 27, 2026
10:13 AM
Captive coal power units to boost grid supply ahead of year‑end peak demand

New Delhi, September 27 – To address looming electricity shortfalls, the Ministry of Power has ordered all captive coal‑based power plants with a capacity of 50 MW or more to run at their highest possible output. The order, effective from 1 October to 31 December 2026, is grounded in Section 11 of the Electricity Act, which allows the government to issue binding operational directives in extraordinary situations.

The ministry highlighted that the move is based on current demand‑supply dynamics and an anticipated rise in power consumption across the country. By ensuring that captive plants contribute their full generation potential, the government aims to improve overall grid reliability.

Operators are required to first meet their internal captive power requirements. Any remaining electricity must be offered to the market through power exchanges under existing regulations, thereby increasing the volume of power available to meet peak‑hour loads.

Compliance will be tracked through weekly submissions to the Central Electricity Authority, covering details such as total generation, captive consumption, power‑exchange sales, available capacity and coal stock levels.

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