India’s largest power producer, NTPC Limited, has procured nearly 3 million tonnes (MT) of coal directly from commercial miners over the past six months, marking a strategic shift in its coal procurement model aimed at ensuring uninterrupted fuel supply for power generation during the peak summer season.
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This initiative is part of NTPC’s newly introduced doorstep delivery model, under which the selected commercial coal miner—chosen via competitive auction—is tasked with transporting the coal directly to NTPC’s plant locations. This approach is designed to reduce logistical challenges and associated costs, a senior company official said.
Until now, NTPC has largely depended on Coal India for coal procurement, along with sourcing from its own captive mines and through imports. However, under the revised model, Coal India is not permitted to participate in the auctions, nor can auction winners supply coal sourced from Coal India.
“In the last six months, around 3 million tonnes of thermal coal has been sourced through this new method via multiple tenders,” the NTPC official said, adding that tenders have been floated specifically for ‘domestic coal procurement through auction’, targeting only commercial miners.
This new model is seen as a strategic response to growing power demand, especially as the government projects peak power demand to reach 277 GW during the 2025 summer season. NTPC, which generated 438.6 billion units of electricity in FY25, has already crossed 80 GW in installed generation capacity. Its own mining division contributed 45 MT of coal from captive sources last year.
Market analysts suggest this new strategy could have long-term implications for Coal India, which has traditionally been NTPC’s primary coal supplier. If successful, the model could open substantial business avenues for private commercial mining companies.
Since the launch of commercial coal mining in 2020, the Ministry of Coal has auctioned 125 coal blocks with a collective capacity of 273.06 MT per year. These mines are expected to play a key role in boosting domestic coal output, improving energy security, and reducing dependence on imports.
The commercial miners expected to benefit from this model include NLC India, ACC, JSW Energy Utkal, Sarda Energy and Minerals Ltd, S M Steels and Power Ltd, Jharkhand Exploration and Mining Corporation, Western Coalfields, Jindal Steel and Power, and Innovative Mines and Mineral, among others.
According to the Ministry of Coal, once fully operational, these commercial mines are projected to generate Rs. 38,767 crore in annual revenue, attract Rs. 40,960 crore in capital investment, and create employment opportunities for over 4.6 lakh people.
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