The Power Ministry has directed imported coal based (ICB) power plants to continue operating at optimum capacity, which is part of the Ministry’s preparations for the upcoming peak electricity demand season running from April to June 2025.

Sources said that it has become a general practice to direct ICB plants to start operating at optimum capacity ahead of the summer demand season.

“This year the summers have come early. January and February were milder than last year, Besides, the Ministry also made adequate provisions to ensure availability for winters, by extending Section 11 directive to ICBs to operate at full capacity up to February 28,” one of the sources said.

The country will experience normal to above normal temperatures in March, said D S Pai, ADGM, Indian Meteorological Department (IMD), announcing the seasonal weather forecast for March-May on Friday.

The installed capacity of ICB plants is around 25 gigawatts (GW), of which operational is around 18 GW. Companies such as Tata Power, Adani Power, Essar, Shree Cement and JSW Energy are operating ICB plants.

Thermal power plants (TPPs), running on foreign coal, imported a record 41.81 million tonnes (MT) in FY24, hitting a four year high following the government’s mandate to run units at full capacity till October 15, 2024 to meet India’s rising electricity consumption.

Power Ministry data shows that ICB plants procured 41.81 MT of foreign coal, a whopping 104 per cent growth Y-o-Y from 20.53 MT in FY23.

In FY24, the Power Ministry invoked Section 11 of the Electricity Act to help meet the rising demand for electricity.

The price of imported coal is higher compared to domestic, leading to higher tariffs. However, operating under Section 11 allows for the variable cost to be passed through, providing relief to operators.