Power Min directs imported coal-based plant to run at full capacity from April 1

The Power Ministry is believed to have directed imported coal-based thermal plants to operate at full capacity for three months from April 1, to avoid any electricity shortage amid the estimated peak demand of 270GW during this summer.

Sources said that in letters sent to imported coal-based plants in the country, the power ministry invoked Section 11 of the Electricity Act, asking them to run at full capacity.

The step has been taken to ensure optimal power availability, considering the prevailing demand-supply scenario and the expected rise in electricity demand in the coming months, according to the letter.

The ministry has estimated the peak power demand to be over 270GW during this summer season (April onwards).

However, during last summer (April 2025 onwards), the peak power demand was 242.77 GW in June, 2025.

According to Government estimates, peak power demand was expected to touch 277 GW in the summer of 2025.

The peak power demand touched an all-time high of about 250 GW in May 2024. The previous all-time peak power demand of 243.27 GW was recorded in September 2023. The peak power demand met or the highest supply during February, rose slightly to 243.15 GW from 238.06 GW recorded in February 2025.

There are about 15 imported coal-based thermal power projects in the country which have got this directive from the power ministry, the sources said. The order shall remain valid for the generation and supply of power from April 1, 2026, to June 30, 2026, they further stated.

Earlier this month, Tata Power arm Coastal Gujarat Power Ltd (CGPL), which operates the 4000 MW Mundra plant, informed about signing supplementary power purchase agreements (PPA) with GUVNL (Gujarat).

The plant supplies 50 per cent of the output to Gujarat. The company will ink supplementary PPAs with Maharashtra, Rajasthan, Punjab, and Haryana subsequently. The company had suspended operations at all units of the Mundra plant on July 2, 2025 and has been suffering losses due to the temporary closure of the plant.

The 4,000 MW Mundra Ultra Mega Power Project (UMPP) in Kutch, Gujarat, is a coal-based thermal power plant with five 800 MW units providing electricity to Gujarat, Maharashtra, Punjab, Haryana, and Rajasthan.