New Delhi: India’s largest power generator, NTPC, is planning to procure up to 10 million tonnes (MT) of coal from captive and commercial mines during the second half of FY2026-27 to strengthen fuel supplies, as coal stocks at its power plants remain significantly below prescribed levels.
The planned procurement would be the largest quantity of coal NTPC has targeted from commercial sources over a six-month period. The move comes as the power producer seeks to diversify its coal sourcing and maintain adequate fuel availability for its thermal power plants.
NTPC Plans to Increase Coal Sourcing from Captive and Commercial Mines
NTPC has an annual coal requirement of around 280 MT, with the majority of its supplies currently sourced from Coal India and its subsidiaries.
According to a government official, NTPC plans to increase coal sourcing from captive and commercial mines to nearly 25% of its annual requirement, which would amount to around 70 MT annually.
Over the longer term, NTPC is expected to procure around 10-15 MT of coal every year from commercial mines. The company is targeting:
- 25% of its coal requirement from captive mines
- 8-10% from commercial coal mines
- Continued supplies through its existing sourcing arrangements, including Coal India and its subsidiaries
The strategy is aimed at strengthening fuel security and reducing dependence on a single supply channel.
NTPC’s Commercial Coal Procurement Set to Rise Sharply
NTPC’s planned 10 MT procurement target represents a significant increase compared with its previous commercial coal sourcing.
The company procured 2.9 MT of coal from commercial mines in 2024, while it did not make any such procurement in 2025. If NTPC achieves its 10 MT target during the second half of FY2026-27, the volume would be more than three times the quantity procured from commercial mines in 2024.
The increased sourcing is expected to support NTPC’s efforts to maintain coal availability amid low inventory levels across its thermal power fleet.
NTPC Coal Stocks Remain Below Prescribed Levels
As of October 5, 2026, NTPC’s standalone fleet had coal stocks of 4.58 MT, which was only around 36% of the prescribed level.
The fleet’s normative coal stock requirement stood at 12.83 MT. Based on the consumption rate assumed by the Central Electricity Authority (CEA), the available stock was estimated to last for nearly six days.
At least 10 NTPC power plants were classified as “critical” in terms of coal stock availability, reflecting the pressure on fuel inventories.
Thermal Power Plants Also Face Low Coal Inventories
The broader thermal power sector is also facing a significant gap between available and prescribed coal stocks.
As of October 5:
- Coal stocks at thermal power plants stood at 18.15 MT
- The stocks were sufficient for around 6.5 days of consumption
- The normative coal stock requirement was 57.23 MT
- Out of 176 domestic-coal-based power plants, 81 were classified as critical
- Critical plants had coal stocks below 25% of their normative requirement
The low stock position has increased the importance of securing additional coal supplies, particularly for large thermal power generators such as NTPC.
NTPC Focuses on Diversifying Coal Supply
The planned procurement from captive and commercial mines forms part of NTPC’s broader strategy to diversify its fuel sourcing. With an annual coal requirement of around 280 MT, increasing supplies from captive and commercial sources could provide the company with greater flexibility in managing coal availability.
The proposed sourcing mix, including 25% from captive mines and 8-10% from commercial coal mines, is expected to strengthen NTPC’s fuel security while supporting reliable power generation.
About NTPC
NTPC Limited is India’s largest power generation company and a Maharatna Central Public Sector Enterprise under the Ministry of Power. The company has a diversified power portfolio spanning thermal, hydro, solar, wind and other renewable energy projects. NTPC plays a major role in meeting India’s electricity demand and continues to expand its generation capacity while focusing on energy security, operational efficiency and the transition towards cleaner sources.
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