The Ministry of Coal has dismissed reports suggesting that Punjab’s ongoing power shortages are the result of inadequate coal supply, asserting that sufficient coal has been made available to the state’s thermal power plants and that operational issues, rather than fuel availability, are affecting electricity generation.
Responding to media reports linking prolonged power cuts in Punjab to coal shortages, the ministry said Coal India Limited (CIL) has consistently maintained adequate supplies to both Punjab State Power Corporation Limited (PSPCL) plants and independent power producers (IPPs). It added that timely lifting of coal already allocated by CIL, greater utilisation of PSPCL’s captive coal production and improved plant performance are critical to sustaining power generation in the state.
The Centre highlighted that it has facilitated coal movement from PSPCL’s captive Pachhwara Central Coal Mine to Punjab’s IPPs since production began, subject to statutory payment obligations to the Government of Jharkhand. It also permits IPPs such as Nabha Power Limited (NPL) and Talwandi Sabo Power Limited (TSPL) to use up to 50% of the mine’s annual production after meeting the requirements of specified end-use plants.
According to the ministry, coal deliveries from CIL have exceeded the recent consumption levels of Punjab’s major IPPs. Over the last three days, NPL consumed around 4.3 rakes of coal per day while receiving an average of five rakes daily. Similarly, TSPL consumed about 3.8 rakes per day but also received an average of five rakes daily. Through September 2026 so far, average daily supplies stood at approximately 4.9 rakes for NPL and 4.1 rakes for TSPL, both higher than their average consumption.
The ministry also pointed to underutilisation of coal from PSPCL’s captive Pachhwara mine. Between April 2026 and September 11, mine production reached 83.67% of its annual target, but despatches amounted to only 68.44%, resulting in an accumulated stockpile of nearly 3.21 lakh tonnes that remains unevacuated.
PSPCL’s own thermal power stations, Guru Hargobind TPS, Goindwal Sahib TPP and Ropar TPS, with a combined installed capacity of 2,300 MW, had coal stocks equivalent to around 114% of the normative requirement as of September 11, the ministry said. Despite this comfortable inventory, the tentative Plant Load Factor (PLF) of these stations during September was only around 59%, indicating that reduced generation cannot be attributed to coal shortages.
The ministry further noted that breakdowns at privately operated power plants have also affected electricity generation and urged the state to closely monitor the operational performance of these facilities.
It also drew attention to the slow uptake of additional coal already offered by CIL subsidiaries. Central Coalfields Limited had offered five lakh tonnes of coal to NPL and TSPL under the Rail-Cum-Road (RCR) mode, of which only around 4.1 lakh tonnes had been booked and 3.2 lakh tonnes lifted. Bharat Coking Coal Limited similarly offered 3.5 lakh tonnes to NPL, but only about 1.7 lakh tonnes were booked and 1.1 lakh tonnes lifted.
In response to rising electricity demand, CIL has additionally allocated 2.3 lakh tonnes of coal to NPL from BCCL and three lakh tonnes to TSPL from CCL under its Flexibility Policy for the second quarter, although lifting against these allocations has yet to begin.
The Ministry of Coal reiterated that coal supply arrangements for Punjab remain fully operational and stressed that improving coal lifting by IPPs, increasing evacuation from PSPCL’s captive mines and enhancing generation efficiency at the state’s thermal power plants are essential for optimising electricity generation and meeting Punjab’s power demand.
