By Sadananda Mohapatra, Senior Business Journalist
Government Rules Out Coal Import Mandate, Orders Captive Plants to Pitch In
The Power Ministry has drawn a clear line. There will be no mandatory blending of imported coal this year. There will be no order forcing gas plants to generate either. Spot gas remains expensive and seaborne coal prices have climbed. Instead, the government has turned to a domestic lever: captive power plants, the generators industrial companies run for their own factories.
On 25 September the Ministry invoked Section 11 of the Electricity Act, 2003 and directed 112 captive coal stations of 50 megawatts and above to run at maximum available capacity from 1 October to 31 December. After meeting their own industrial demand, these plants must offer surplus electricity on the power exchanges. They must also maintain adequate coal stocks and send weekly reports to the Central Electricity Authority. The order covers facilities owned by steel, aluminium, cement, refining and fertiliser companies.
Coal stocks at thermal stations fell to 22.9 million tonnes on 19 September, about seven days of fuel and 39% of the normative level, and 74 of 190 plants were in the critical category, up from 51 in August. Hydro generation fell 16% year on year in September, to 18,670 gigawatt hours, because of the weak monsoon. Evening shortfalls have continued into early October even as overall demand has begun to ease.
Section 11 has already shown what it can do. Coastal Gujarat Power Limited restarted its 4,000 megawatt imported coal plant at Mundra on 1 April, the first day of its own mandate, and generated 2,000 gigawatt hours in September against a reported zero a year earlier. With Adani’s rise of 1,752 gigawatt hours, the two generators supplied about 63% of the 5,927 gigawatt hour increase in private sector thermal output, which reached 41,433 gigawatt hours, up 16.7%. Nationally, thermal generation rose 15.6% to 117,907 gigawatt hours and filled the hydro gap.
The approach has limits. Captive capacity is smaller than the utility fleet, and these plants serve their own factories first, so the surplus reaching the exchanges may be modest. Many face the same rail and logistics constraints that have kept stocks low at grid-connected stations. NTPC Limited, formerly the National Thermal Power Corporation, is separately seeking coal from commercial mines to rebuild its own stocks. Faster coal movement from pithead to plant still has to improve for the strategy to hold.
The first test comes with October generation data, due in early November. Whether plant stocks rebuild and captive surplus reaches the market will decide how comfortably India manages the remaining months of high demand.
Joules Capsule : Quick reads from the world of energy this week
Cabinet Approves Rs 1.86 Trillion Green Energy Corridor Phase III
The Union Cabinet on September 30 approved Green Energy Corridor Phase III, a Rs 1.86 trillion [$19.4 billion] scheme due for completion in the 2032-33 financial year. It strengthens state transmission networks to carry up to 135 gigawatts of renewable power to consumers, and includes Rs 50,000 crore [$5.2 billion] for 50 gigawatt hours of battery storage. Central support of Rs 54,082 crore [$5.6 billion] will offset intra-state transmission charges. Storage is aimed at evening and non-solar hours, the gap this week’s lead story describes.
Nuclear Output Jumps 35% on a Small Base
Nuclear plants generated 5,479 gigawatt hours in September, up 35.4% from a year earlier and 10.3% above the monthly program, according to Central Electricity Authority data. Utilisation was near 87% of the 8,780 megawatts of monitored capacity, by our estimate. Even so, nuclear supplied only 3.8% of monitored generation, while thermal supplied 82.1%. Adani’s proposed 5,600 megawatts in Odisha alone would equal about 64% of today’s entire fleet, a steep climb from a base this small.
Commercial LPG Price Rises Rs 62.50 as Biometric Check Tightens Subsidy
Oil marketing companies raised the price of the 19 kilogram commercial liquefied petroleum gas cylinder by Rs 62.50 [$0.65] from October 1, taking the Delhi price to Rs 2,810 [$29.30] from Rs 2,747.50. The 14.2 kilogram household cylinder stays at Rs 942 [$9.80] in Delhi. Subsidised household refills now require biometric Aadhaar authentication from the same date, a check of the buyer’s identity against the national database. The hike falls on restaurants, hotels and canteens, while the authentication rule limits the subsidy to verified users.
About the Author:
Sadananda Mohapatra is a veteran business journalist with decades of experience covering India’s energy, industry, and economic landscape. With stints at reputed financial news publications like The Business Standard & NewsWire18, he reported extensively on India’s power sector, minerals policy, coal and energy regulation, and industrial developments — building a deep, ground-level understanding of the global energy economy. His work spans corporate affairs, infrastructure, and policy analysis, with a particular focus on eastern India’s resource-rich industrial corridor. He currently writes on the global energy landscape through his newsletter, The Joule’s Stack.
