Punjab coal supply: Centre says power plants had adequate stocks

New Delhi: Centre said Punjab coal supply remained adequate and rejected claims that shortages had reduced generation at the state’s thermal plants.

The Ministry of Coal said Coal India Limited (CIL) remained committed to uninterrupted supply. It also said the Centre had enabled coal movement to Punjab-based Independent Power Plants.

The ministry said it facilitated coal movement to IPPs after PSPCL began production from its captive mines. The supply included coal from the Pachhwara Central Coal Mine.

However, IPPs must meet the statutory payment obligation to the State of Jharkhand. The Centre also allowed non-PSPCL IPPs to use Pachhwara coal.

Nabha Power Limited in Rajpura and Talwandi Sabo Power Limited in Mansa can use up to 50% of annual production. They must first meet the needs of Specified End Use Plants.

PSPCL operates three thermal plants at Lehra Mohabbat, Goindwal Sahib and Ropar. Together, the plants have a capacity of 2,300 MW.

As of September 4, 2026, coal stocks at PSPCL plants stood at around 117% of the normative requirement. The ministry said this showed that coal availability was more than adequate.

Despite that stock position, PSPCL plants recorded an average Plant Load Factor of about 42% in August 2026. Therefore, the ministry said low generation could not result from a shortage at the plant end.

Punjab coal supply backed by CIL offers

Nabha Power, a Punjab-based IPP, recorded a PLF of around 93% during August. It received adequate coal from CIL sources.

The ministry said this performance showed that Punjab coal supply had not constrained power generation in the state.

Meanwhile, CIL subsidiaries had offered additional coal to Punjab-based IPPs. However, the companies had not fully booked or lifted the offered quantities.

Central Coalfields Limited offered 5 lakh tonnes (LT) to Nabha Power and Talwandi Sabo Power on March 30, 2026. The offer came under the RCR mode.

Of that quantity, the companies had booked about 4.1 LT. They had lifted around 3.1 LT so far.

Similarly, Bharat Coking Coal Limited offered 3.5 LT to Nabha Power. The company had booked about 1.3 LT and lifted around 0.98 LT.

The ministry said timely coal lifting by IPPs remained important. It also stressed better generation from PSPCL’s own plants.

According to the Centre, both steps could improve power generation in Punjab. They could also help meet the state’s power requirements.

The Ministry of Coal reiterated that the Centre had already taken concrete steps to support Punjab coal supply. It said CIL would continue working to maintain uninterrupted supplies across the country, including Punjab.

The ministry also said higher use of PSPCL’s own plants would support generation. Timely lifting of coal already offered by CIL subsidiaries would further help optimise output.