Imported coal based power plants told to operate at full capacity till June 30

In a directive to the ICB plants, the power ministry said that it has extended the time period for Section 11 of the Electricity Act until the end of June. The mandate was last extended in February until 30 April.

"In view of the power demand scenario in the country, it has been decided to extend the time period of the Section 11 directive to generating companies having Imported Coal Based (ICB) plants till 30.06.2025," said a letter to the power plants viewed by Mint.

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Queries sent to the Union power ministry remained unanswered till press time.

Section 11 mandates that the imported coal-based plants operate according to the government's directives amid expectations of high demand and in extraordinary situations.

Due to the high price of imported coal and its lower viability, imported coal-based plants may tend to operate at levels below their maximum capacity or even shut down.

India has 17 imported coal-based power plants with a cumulative power generating capacity of nearly 18 GW.

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The move comes amid projections of record demand this year. According to the Central Electricity Authority (CEA), the peak power demand this summer may reach 270 GW, way ahead of the 250 GW level reached on 30 May 2024. On 30 April, the peak power demand in the country was 223.86 GW.

The Centre has been cautious and proactive regarding coal and power availability since the crisis in 2021 when coal stocks depleted amid lower domestic production and high prices of imported coal.

Coal production

Coal production in the country has also increased in the past three years, with the annual output for FY25 surpassing the 1 billion tonne mark for the first time.

The coal ministry said in a statement on Thursday that India’s coal production and dispatch witnessed steady growth in April 2025 compared to the same period last year.

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"The overall coal production in India during April 2025 reached 81.57 million tonnes (provisional), marking an increase over the 78.71 MT produced in the corresponding period of the previous year. Production from captive/other entities mines during April 2025 in FY 2025-26 stood at 14.51 MT (provisional), registering a significant rise from 11.46 MT recorded during the same period last year," it said.