GENERAL26 Sept 2026
Centre orders captive coal plants to run at full capacity from Oct 1
India's power ministry has ordered over 100 captive coal plants, each at least 50 megawatts, to run at full capacity from October 1 to year-end. These plants mainly power aluminium, steel, cement and refinery units. Generators must now sell surplus power through exchanges and report weekly to the Central Electricity Authority. If your factory uses captive power, watch coal stock and power costs closely.
Key Statutory Highlights
- The power ministry invoked emergency provisions of the Electricity Act to direct these plants to run at maximum capacity.
- The order covers 112 captive plants belonging to companies including Vedanta, Tata Steel, Hindalco, JSW Steel, UltraTech Cement, Reliance Industries and Indian Oil.
- Plants must report weekly to the Central Electricity Authority on generation, captive consumption, power sales, available capacity and coal stocks.
Actionable Advice for Taxpayers / Founders:Review your captive power supply and coal stock position, and build possible power cost changes into your next quarter's budget. Confirm how this order applies to your own plant with your CA or legal advisor before you act.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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