Industry Odisha Bureau, Sep 26: India is drawing industrial generation deeper into electricity management. A new order directs 112 captive coal power plants to maximise output. Officials expect electricity demand to rise in the coming months.
India is turning to factory-linked power stations to support its wider electricity system. The Power Ministry has directed 112 captive coal-fired plants to maximise generation. The direction applies from October 1 until December 31, 2026. It covers only plants with installed capacity of at least 50 megawatts. That threshold keeps the focus on larger industrial generating units.
Emergency powers, stated rationale
The ministry issued the order on September 25, 2026. It invokes Section 11 of the Electricity Act. That provision applies under extraordinary circumstances. It lets the government direct how generators operate their power stations. The order cites an expected rise in electricity demand in the coming months.
Fuel stocks under strain
Coal availability forms the backdrop. Nearly 40% of India’s coal-fired plants are running on critically low fuel stocks. The figure refers to coal-fired plants generally, not specifically the captive units. Reports link this pressure to stronger power demand. Temperatures running above normal, attributed to El Nino, have added to that demand.
From self-supply to system support
Captive plants mainly power the industrial sites they are built to serve. These include aluminium smelters, steel manufacturers, cement factories and oil refineries. The order widens that role. Generators must now sell surplus electricity through power exchanges. Industrial supply remains the plants’ primary task. That gives captive capacity a dual function during the period.
Major industrial groups in scope
The covered plants belong to some of India’s largest industrial companies. Vedanta, Tata Steel, Hindalco Industries and JSW Steel are among the owners. UltraTech Cement, Reliance Industries and Indian Oil also appear. So do Bharat Aluminium, Hindustan Zinc and Nayara Energy. Together they span the metals, cement and refining sectors the order describes. Not every plant these groups own is necessarily covered.
Weekly data for the CEA
Oversight comes through weekly reporting to the Central Electricity Authority. Plants must disclose generation, captive consumption and power sales. They must also report available capacity and coal stocks. The data gives authorities a regular view of industrial generation. It also shows how much capacity could support broader electricity supply.
Mundra sits apart
A separate direction covers Tata Power’s Mundra plant in Gujarat. The station runs on imported coal. The ministry has extended an earlier emergency order for the plant. Mundra must operate at full capacity until December 31. The ministry again cited the electricity demand situation. That order stands distinct from the captive-plant direction.
A test beyond the factory gate
The measure leans temporarily on India’s industrial generating base. Its impact will depend on plant availability and adequate coal stocks. It also tests how far captive power can serve beyond self-supply. For three months, factory power stations become part of India’s demand management.
