The Centre has ordered 112 captive coal-based power plants across India to maximise electricity generation for three months as the country prepares for higher power demand during the final quarter of 2026.
The direction, issued by the Ministry of Power under Section 11 of the Electricity Act, 2003, will apply from October 1 through December 31, 2026.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: 112 captive coal-based generating stations directed to maximise available generation.
Location: Across India.
Authority/Organisation: Ministry of Power.
Action Taken: Section 11 directions effective from October 1 to December 31, 2026.
Impact: Surplus electricity from covered captive plants will be made available through power exchanges after meeting their own requirements.
The covered plants have an installed capacity of 50 MW or more and are primarily captive generating facilities operated by industrial units that use electricity for their own operations.
Under the direction, these generating stations must operate and produce electricity to the maximum extent of their available capacity.
Where generation exceeds the electricity required for their own captive consumption, the plants have been directed to offer the available surplus through power exchanges, subject to applicable market regulations.
Editorial Analysis
Why This Matters
The directive brings additional captive generation capacity into focus at a time when electricity consumption remains elevated. For industrial operators, the order means affected plants will be expected to maximise available generation while maintaining sufficient coal stocks. For the wider electricity market, surplus power from these facilities could become available through exchanges after the plants meet their own captive requirements. The measure also gives authorities additional visibility over generation, fuel availability and electricity sales through weekly reporting to the Central Electricity Authority. However, the directive does not mean that all 112 plants will continuously operate at their nameplate capacity. The order refers to the maximum extent of available capacity, which depends on plant condition, fuel availability and operating circumstances.
The measure is intended to increase the availability of electricity in the wider power market at a time when demand has remained unusually strong.
The Ministry has also directed the affected generators to maintain adequate coal stocks to support maximum generation during the period.
