Government Directs Imported Coal Plants to Operate at Maximum Capacity Through June Amid Growing Electricity Demand

Union Power Ministry Calls for Increased Imported Coal-Based Power Generation

The Union Power Ministry has issued a directive to imported coal-based (ICB) power stations, including Coastal Gujarat Power (CGPL), to operate at maximum capacity through the April–June period. This move is aimed at meeting the expected surge in electricity demand during the peak summer months.

According to the ministry, the directive is part of a broader set of steps being taken in view of the current supply situation and anticipated consumption trends. The ministry has stated that to ensure adequate availability of electricity, generation from Imported Coal-Based (ICB) plants needs to be enhanced.

The CGPL plant in Gujarat has been specifically asked to run at full output, while similar instructions have reportedly been issued to other ICB facilities to maintain optimal generation levels over the next three months.

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Determining Pricing A committee comprising representatives from the Power Ministry, the Central Electricity Authority (CEA), and NTPC will work out the tariff structure. The ministry stated that the panel would ensure that benchmark rates meet all the prudent costs of using imported coal for generating power, including the present coal price, shipping costs and O&M costs, etc. and a fair margin.

Electricity Supply Arrangements Electricity generated under these arrangements will first be supplied to power purchase agreement (PPA) holders. Any excess electricity, or power not requisitioned under existing agreements, will be sold on power exchanges. In cases where a plant has agreements with multiple distribution companies and one entity does not schedule its allocated share, the unused portion will be offered to other PPA holders before being diverted to exchanges.

Operational Requirements The ministry has also mandated that generators maintain coal inventories in line with existing norms to support uninterrupted full-capacity operations. Additionally, operators must submit weekly updates to the ministry detailing production and sales.

Financial Matters The directive further stated that plants must continue operations regardless of any pending dues, noting that such financial matters "shall be dealt with separately." The ministry has clarified that if plants comply with directions issued under Section 11 of the Electricity Act, "no penalty can be imposed by the procurer on account of availability under PPA."

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