Business EconomyPosted at: Sep 28 2026 4:16PM


No coal shortage despite higher power demand, monsoon disruptions: G Kishan Reddy

New Delhi, Sep 28 (UNI) Coal and Mines Minister G Kishan Reddy on Monday said there is no shortage of coal in the country despite higher thermal power demand, monsoon-related disruptions in mining operations and lower hydropower generation.
“There is no shortage of coal. We are supplying by rakes and road,” Reddy said while responding to questions about reports of an alleged coal shortage at power plants.
The union Coal and Mines minister was speaking on the sidelines of the Assocham-organised Angul Aluminium Roadshow here.
"Thermal power demand had increased by around 12-15 per cent as hydropower generation declined, while monsoon conditions had also affected coal mining operations. The temporary disruptions should not be construed as a coal shortage, and asserted that the overall situation was normal," the minister added.
"The situation is normal. There is no tension," he said.
Recently, the government has directed captive coal-based power plants with a capacity of 50 MW or more to generate electricity to the maximum extent possible from October 1, as it prepares for higher power demand in the coming months.
Ministry of Power has invoked Section 11 of the Electricity Act, directing captive coal-based power plants with a capacity of 50 MW or more to operate at the maximum level possible amid expectations of higher electricity demand in the coming months.
The directions, which will remain in force from October 1-December 31, are aimed at improving power availability and ensuring that available generation capacity is fully utilised. The ministry said it is taking several measures to maintain adequate electricity supply in view of the prevailing demand-supply situation and the expected increase in consumption.
Captive power plants are facilities set up by industries to meet their own electricity needs. Under the latest directions, these plants will first meet their own requirements. If they have electricity left over, they will have to sell that surplus power through power exchanges or other permitted channels.
For consumers, the move is primarily about keeping electricity supply adequate during periods of high demand. By bringing surplus power from captive plants into the wider market, the government wants to make better use of the electricity already available and ensure that additional supply reaches the grid when required. UNI VK SAS
Tags: #No coal shortage despite higher power demand# monsoon disruptions: G Kishan Reddy
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