Government orders all imported-coal plants to operate at full capacity as power demand surges

To tackle the persisting power crisis across India, the Centre has invoked Section 11 of the Electricity Act, mandating all imported coal-based projects to generate power at full capacity, the Ministry of Power said in a statement on May 5.

“All imported coal-based power plants shall operate and generate power to their full capacity. Where the imported coal-based plant is under National Company Law Tribunal (NCLT), the Resolution Professional shall take steps to make it functional," the government ordered.

The order will operationalise at least seven gigawatt worth of power plants of Essar Power and Coastal Energen in states such as Gujarat, Andhra Pradesh and Tamil Nadu and will also apply to plants under NCLT.

It will also help restart non-operational units of Adani Power and Tata Power.

Section 11 of the Electricity Act gives the government the authority, in extraordinary circumstances, to order any generating company to operate and maintain its stations.

"The demand for power has gone up by almost 20% in energy terms. The supply of domestic coal has increased but the increase in the supply is not sufficient to meet the increased demand for power. This is leading to load shedding in different areas," the Power Ministry said.

On April 29, Indian Railways said 657 mail and passenger trains will be cancelled till May 24 to deal with an unprecedented shortage of the vital input at thermal power plants. While the railways plan to restore operations when possible, at least 21 mail and express passenger trains may remain cancelled till May 24.