The Ministry of Power has extended the deadline for thermal power plants using imported coal to operate at full capacity by three-and-a-half months until September 30. This decision aims to prevent electricity shortages amidst increasing demand in the country. On June 9, 2023, the peak power demand reached a record high of 223.23 GW. The ministry's notice, sent to 15 imported coal-based thermal power projects, stated that the time period for Section 11, which mandates full capacity operation, has been extended until September 30, 2023.

Previously, in February, the ministry had directed these imported coal-based plants to operate at full capacity from March 16, 2023, to June 15, 2023, invoking Section 11 of the Electricity Act 2003 to ensure uninterrupted power supply during a sudden surge in demand. The peak power demand for this summer was estimated to reach a record high of 229 GW. However, the demand was affected by unseasonal rains and reduced usage of cooling appliances like air conditioners, which consume significant electricity.

The 15 imported coal-based power plants include those operated by Tata Power, Adani Power, Essar, JSW, Udupi Power, Meenakshi Energy, and others. The country's peak power demand is projected to reach 230 GW in 2023. The government has pledged to take all necessary measures to meet this demand.

The ministry's earlier notice in February emphasized the need to increase the use of imported coal by blending it with domestic fuel in coal-based plants and maximizing generation from imported coal-based plants to bridge the gap between demand and domestic coal supply. This approach aims to alleviate pressure on domestic coal supply and ensure the availability of all plants during periods of peak demand. The ministry has also allowed the pass-through of higher costs associated with imported coal and facilitated the sale of excess power in exchanges. Additionally, a new segment called the High Price-Day Ahead Market was introduced to enable imported coal-based plants, gas-based plants, and battery energy storage projects to sell power at prices of up to Rs 50 per unit in exchanges.