New Delhi: The Ministry of Power has directed 112 captive coal-based generating stations with an installed capacity of 50 MW and above to generate electricity to the maximum extent of their available capacity from October 1 to December 31, 2026.
The directions were issued on September 25 under Section 11 of the Electricity Act, 2003, amid the prevailing power demand-supply situation and expectations of higher electricity demand in the coming months.
The Ministry said the measure is aimed at ensuring adequate electricity availability for consumers and maximising the use of available generation capacity, including captive generating plants.
Captive Coal Plants Ordered to Maximise Power Generation
Captive power plants are generally operated by industrial units to meet their own electricity requirements. Under the latest directions, the covered plants have been asked to utilise their available generation capacity to the maximum possible extent.
The key directions include:
- Captive coal-based generating stations of 50 MW and above must maximise generation.
- The directions will remain effective from October 1 to December 31, 2026.
- Plants must maintain adequate coal stocks to ensure continuous fuel availability.
- Surplus electricity remaining after meeting captive demand must be offered through power exchanges.
- Generators must comply with applicable market regulations and procedures.
The Ministry said maximising generation from captive plants is necessary to optimise the availability of electricity from all available sources.
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Surplus Power to Be Sold Through Power Exchanges
The order requires generators to offer their available surplus generation, after meeting their own captive electricity requirements, through power exchanges.
This will allow electricity that is not required for the plants’ own industrial operations to be made available to the wider power market.
The sale of surplus electricity will have to follow the applicable market regulations and procedures.
The measure is intended to increase the amount of generation capacity available to the grid during the period covered by the directive.
Captive Plants Must Maintain Adequate Coal Stocks
The Ministry has also placed emphasis on fuel availability.
The covered generating stations have been directed to maintain adequate coal stocks to ensure that their plants have sufficient fuel for operations and can maximise generation during the three-month period.
The requirement is particularly linked to the Ministry’s objective of ensuring that available generation capacity is not limited by inadequate fuel availability.
Weekly Compliance Reports to CEA
Compliance with the directions will be monitored through the Central Electricity Authority (CEA).
Each generator will be required to submit a weekly report containing information such as:
- Electricity generation
- Captive electricity consumption
- Power sold through power exchanges or other permitted avenues
- Available generation capacity
- Coal stock position
The reporting mechanism will enable the authorities to track generation, captive consumption, surplus power sales and fuel availability during the period of the directive.
Steel, Aluminium and Cement Plants Among Those Covered
The 112 captive generating stations listed in the order are associated with a range of energy-intensive industries.
Major sectors represented include:
- Steel
- Aluminium
- Cement
- Petroleum and refining
- Fertilisers
- Paper
- Chemicals
The list includes captive generating facilities associated with companies such as Tata Steel, Vedanta, Hindalco Industries, JSW Steel, UltraTech Cement, Indian Oil Corporation and National Aluminium Company (NALCO).
Steel Sector
The order covers captive plants associated with several major steel producers, including:
- Steel Authority of India Limited (SAIL)
- Rashtriya Ispat Nigam Limited (RINL)
- Tata Steel
- JSW Steel
- ArcelorMittal Nippon Steel India
- Jindal Steel
- Jindal Stainless
SAIL’s Rourkela, Durgapur and IISCO plants are among those named in the list.
Aluminium and Zinc Sector
The covered facilities also include captive power plants linked to aluminium and zinc producers such as:
- Vedanta
- Hindalco Industries
- NALCO
- Bharat Aluminium Company
- Utkal Alumina
- Hindustan Zinc
Vedanta’s Jharsuguda operations, along with its Lanjigarh refinery, are included in the order.
Cement Sector
Several major cement producers are also represented, including UltraTech Cement, ACC, Ambuja Cements, Shree Cement, Dalmia Cement and JK Lakshmi Cement.
Refinery and Fertiliser Units Also Covered
Captive generating facilities associated with the petroleum and refining sector are also included in the list.
These include plants linked to:
- Indian Oil Corporation’s Paradip and Panipat operations
- Nayara Energy
- HPCL-Mittal Energy’s Guru Gobind Singh Refinery
- Reliance Industries and Jamnagar Utilities & Power at Jamnagar
The fertiliser sector is represented by IFFCO’s Paradeep unit and Paradeep Phosphates.
The inclusion of these energy-intensive industrial units expands the directive across several major sectors that operate captive power facilities.
Three-Month Directive Aims to Strengthen Power Availability
The Ministry of Power said the three-month period has been determined based on the prevailing power demand-supply position and the requirement to ensure adequate electricity availability in the grid.
The September 25 order therefore combines three key requirements for the covered captive plants: maximum available generation, sale of surplus electricity through power exchanges and adequate coal stocks.
Weekly reporting to the CEA will provide an additional mechanism for monitoring compliance during the October-December period.
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