India is ready to meet up to 270 GW of peak power demand during summer season this year and the government will make it mandatory for thermal plants, especially those using imported coal, to run at full capacity, Union Power Secretary Pankaj Agarwal said on Friday.
In 2024, the country was able to meet the peak power demand of 250 GW during summer against the projected demand of 260 GW.
Addressing a press conference here, Agarwal informed that thermal power plants in the country have sufficient coal stocks of 51 million tonnes, which is enough for generating electricity for 21 days.
"If we require we will invoke Section 11 (of Electricity Act) for meeting the demand," Agarwal assured.
The Section 11 allows the government to mandate power producers to operate plants in a specified manner in extraordinary circumstances.
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Earlier last year, the power ministry had invoked Section 11 and mandated plants using imported coal to run at full capacity to avoid any shortage of power in the country in view of demand projections.
Union Power Minister Manohar Lal who was also present on the occasion said that there is sufficient domestic coal at present and the country's peak power demand is expected to touch 335 GW in 2030.
Power secretary Agarwal informed that India had met peak power demand of 250 GW during summer season in 2024 against the projected demand of 260 GW.
He also assured that India is ready to meet the 270 GW of power demand during summers this year.
About the supply of fuel for coal-based thermal plants, the minister said that the proportion of blending of biomass pellet will be increased to 7 per cent from existing five per cent from April 1, 2025.
Earlier last year the government had mandated to increase blending of imported coal to improve the supply of fuel.
The minister said that at present, the blending of imported coal is about one per cent with domestic coal, which is well within our target.
About power generation from gas-based plants, the minister explained that the cost of gas-based power is Rs 14 per unit and the country has the capacity of producing 24 GW from such units.
Lal also informed that the carbon market will begin operations in the middle of next years.
"We are going to launch domestic carbon market in the middle of 2026. This will aid trading of carbon credits in the country," he said.
He also hinted that a new policy will be rolled out to deal with the issue of ROW (right of way) for urban areas for transmission projects.
The minister also informed that the power deficit is just 0.1 per cent in the country, which would be eliminated very soon.
About nuclear power for which a mission was announced in the Union budget this year, the minister said that its capacity will be increased to 16 GW by 2030 from 8 GW at present.
About fossil fuel-based power generation capacity, he said that it will be increased to 252 GW by 2030 from 220 GW at present.
He stated that fossil fuel-based plants have long-term power purchase agreements and they will be phased out only after completing their tenure.
On the financial health of power distribution companies, he said that discoms' outstanding dues towards gencos or generating firm has come down to Rs 20,690 crore from Rs 1.4 lakh crore in 2022.
He further said that the aggregate technical and commercial loss has reduced to 15 per cent in 2025 from 25.7 per cent in 2014 and it would be 10 per cent by 2030.
About electricity trade with the other nations, he informed that an undersea transmission line entailing investments of Rs 40,000 crore connecting Dubai is planned.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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