Govt Directs Imported Coal Power Plants to Run at Full Capacity from April to June Amid Demand Surge

Written by: Team Angel OneUpdated on: 4 Apr 2026, 4:29 pm IST
Govt asks imported coal-based power plants to operate at full capacity from April to June to meet rising summer electricity demand.
Govt Directs Imported Coal Power Plants
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The government has initiated measures to ensure uninterrupted power supply during the peak summer period by directing higher output from specific power plants.  

The move comes as electricity demand is expected to rise significantly in the coming months. 

Directive for Maximum Power Generation 

The Union Power Ministry has instructed imported coal-based power stations to operate at their highest possible capacity during the April to June period.  

This includes key facilities such as Coastal Gujarat Power in Gujarat, which has been specifically directed to maintain full output. Similar instructions have been issued to other plants operating on imported coal to sustain optimal generation levels. 

The decision is part of a broader strategy to address anticipated consumption patterns and ensure sufficient electricity availability across the country.  

The ministry emphasised that increasing generation from these plants is essential to meet seasonal demand pressures. 

Tariff Framework and Power Allocation 

To determine pricing for electricity generated under this directive, a committee comprising representatives from the Power Ministry, the Central Electricity Authority and NTPC will establish a tariff structure.  

The pricing mechanism will factor in key cost elements such as imported coal prices, shipping expenses, and operations and maintenance costs, along with a fair margin. 

Electricity produced will first be supplied to entities holding power purchase agreements. Any surplus generation, or power not scheduled under existing agreements, will be sold through power exchanges.  

In cases where multiple distribution companies are linked to a plant and one entity does not utilise its share, the unused allocation will be offered to other agreement holders before being routed to exchanges. 

Operational Conditions and Compliance Requirements 

The ministry has also directed power producers to maintain coal stock levels as per existing norms to support continuous full-capacity operations. Additionally, operators must submit weekly reports detailing production and sales data. 

It has been clarified that plants complying with directions under Section 11 of the Electricity Act will not face penalties from procurers for availability under power purchase agreements. 

Furthermore, operators are required to continue generation irrespective of pending dues, with such financial matters to be addressed separately. 

Read More: Govt Operationalises E-Commerce Export Reforms, Removes ₹10 Lakh Cap and Introduces RTO Framework! 

Conclusion 

By mandating full-capacity operations at imported coal-based plants, the government aims to strengthen power availability during the high-demand summer period while ensuring operational continuity and supply stability. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Apr 4, 2026, 10:56 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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