The Indian government is unlikely to mandate thermal power plants to blend imported coal this summer for the first time in over three years. The coal ministry has assured sufficient domestic coal stock of approximately 51 million tons to sustain power generation, addressing concerns about peak electricity demand.
The Indian government is unlikely to impose a mandate on thermal power plants to blend imported coal this summer, marking a significant shift in its energy strategy. This decision comes after the coal ministry confirmed that the country has sufficient domestic coal stocks, estimated at around 51 million tons, which can sustain power generation for at least 21 days.
The Ministry of Power has reassured that there is no immediate requirement for imported coal blending, a measure that was first enforced in October 2021 when domestic coal reserves fell to critically low levels. Since then, this directive has been repeatedly extended during peak demand periods, including monsoon and winter seasons. However, officials now believe that India’s coal production and logistical capabilities have improved significantly to meet expected demand.
Power Sector Prepared for Record Peak Demand
India is bracing for an unprecedented peak power demand of 270 gigawatts (GW) this summer, as projected by Power Minister Manohar Lal Khattar. Speaking to media personnel in New Delhi, Khattar assured that the ministry is fully prepared to meet this surge, with a planned supply of at least 906 million tonnes (MT) of coal to thermal power plants.
“This year, we have enough coal stocks at thermal power plants, and the ministry is confident of meeting a peak demand of up to 270 GW this summer,” Khattar stated on February 21.
Thermal Power to Remain Dominant Energy Source
Despite a gradual increase in the share of renewable energy sources, coal-fired power plants will continue to be the primary source of electricity generation in India. According to Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), thermal power accounted for 74 percent of India’s electricity supply during peak demand last year, and this year, it is expected to remain within the 70-74 percent range. Hydropower is projected to contribute between 7-11 percent.
Section 11 of the Electricity Act and Contingency Measures
While the government currently sees no need to enforce imported coal blending, it retains the option to impose emergency measures under Section 11 of the Electricity Act, 2003. This provision allows the government to direct power plants to operate at full capacity if energy shortages arise.
Pankaj Agarwal, Secretary of the Ministry of Power, stated that imported coal-based and gas-based power plants could be asked to run at full capacity if needed. “As of now, we have not ordered it, but if there is any crunch projected in meeting peak demand, we would impose it if the situation demands,” Agarwal said.
India’s Shift Towards Energy Independence
India holds some of the world’s largest coal reserves, making domestic coal a more cost-effective solution for power generation than expensive imported alternatives. The government’s confidence in local coal production signifies a shift toward energy security and reduced reliance on external sources. However, industry experts caution that logistical challenges must be consistently addressed to ensure uninterrupted supply.
The decision to forego mandatory imported coal blending reflects India’s growing self-sufficiency in coal production and energy security, setting a new precedent in its energy policy. With power demand projected to rise further in the coming years, India’s ability to sustain supply through domestic resources will be a key determinant of its economic and industrial growth.
