IndiaPosted at: Sep 27 2026 12:06PM


Govt orders captive power plants to generate more electricity, maintain stocks

New Delhi, Sep 27 (UNI) 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 to 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.
The ministry has also asked these generators to keep adequate coal stocks so that their plants can continue operating and generate power at higher levels. This is important because coal availability directly affects the ability of coal-fired power plants to produce electricity.
“Considering the prevailing demand-supply scenario and the expected rise in electricity demand in the coming months, the Ministry of Power is undertaking various measures to ensure adequate supply of electricity to consumers,” the ministry said in a notification.
“The generators shall offer their available surplus generation, after meeting their own captive demand, through the power exchanges, in accordance with the applicable market regulations and procedures,” the ministry said.
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