Key Highlights:

  • Coal Ministry rejects shortage claims: The Centre clarified that adequate coal has been supplied to Punjab's power plants, dismissing media reports linking reduced generation to inadequate coal supply.
  • 117% stock at PSPCL plants: As on September 4, coal stock at PSPCL's plants stood at around 117 per cent of the normative requirement.
  • Low PLF despite comfortable stock: PSPCL's average Plant Load Factor stood at just 42 per cent in August 2026 despite the surplus coal availability.
  • Nabha Power's contrasting performance: Nabha Power Limited, a Punjab-based IPP, achieved a 93 per cent PLF in the same period using CIL-supplied coal.
  • Lifting lag flagged: Coal India subsidiaries CCL and BCCL offered a combined 8.5 lakh tonnes of coal to Punjab IPPs, but only a fraction has been booked and lifted so far.

The Ministry of Coal clarified on Sunday that adequate coal has been made available to Punjab's power plants, and Coal India Limited (CIL) remains fully committed to ensuring uninterrupted coal supply for power generation to all states across the country.

The ministry dismissed reports in a section of the media attributing reduced power generation at Punjab's thermal plants to inadequate coal supply from the Centre.

Punjab State Power Corporation Limited (PSPCL) operates three thermal power plants — Guru Hargobind TPS (Lehra Mohabbat), Goindwal Sahib TPP, and Ropar TPS — with a combined capacity of 2,300 MW.

Stock Levels Comfortable, But Generation Low

"As on September 4, coal stock at PSPCL's plants stood at around 117 per cent of the normative requirement, reflecting more than adequate coal availability. Despite this comfortable stock position, the average Plant Load Factor (PLF) of PSPCL's plants during August 2026 was only around 42 per cent. The low generation during the month therefore cannot be attributed to inadequate coal availability at the plant end," the Coal Ministry statement said.

In contrast, Nabha Power Limited, a Punjab-based independent power producer (IPP), achieved a PLF of around 93 per cent during the same period, backed by adequate coal supplies from CIL sources — demonstrating that coal availability has not been a constraint for power generation in the state, the ministry added.

Centre's Steps On Captive Mine Coal

The Central government has proactively facilitated coal movement to IPPs in Punjab since the commencement of captive mine production.

Supply of coal from PSPCL's captive Pachhwara Central Coal Mine to IPPs has been enabled, subject to fulfilment of the statutory payment obligation to Jharkhand.

Utilisation of coal from the Pachhwara Central Coal Mine by IPPs not owned by PSPCL — including Nabha Power Limited (Rajpura) and Talwandi Sabo Power Limited (Mansa) — is already permitted up to 50 per cent of annual production after meeting the requirements of specified end-use plants.

Offered Coal Lying Unlifted

The statement highlighted that Coal India subsidiaries have proactively offered coal to Punjab-based IPPs, though booking and lifting have lagged.

CCL offered 5 lakh tonnes (LT) of coal to NPL and TSPL on March 30, 2026, under RCR mode, of which only about 4.1 LT has been booked and around 3.1 LT lifted so far. BCCL offered 3.5 LT of coal to NPL, against which only around 1.3 LT has been booked and 0.98 LT lifted so far.

"The timely lifting of coal by the IPPs, together with improved generation performance at PSPCL's own plants, are equally critical to optimising power generation in Punjab," the statement said.

The Ministry of Coal reiterated that the Central government has already taken concrete steps to enable coal movement to Punjab's IPPs from PSPCL's captive mines, adding that higher utilisation of PSPCL's own plants coupled with timely lifting of the coal already offered by CIL subsidiaries would help optimise power generation and address the state's power requirements.