The government has begun invoking emergency powers under Section 11 of the Electricity Act to direct coal-based thermal power plants to increase generation, given the prevailing demand-supply situation and the expected rise in power demand in the coming months.

Earlier this month, the Ministry of Power (MoP) directed Coastal Power Gujarat, a Tata Power-owned company, to generate power at full capacity from April 1 to June 30, 2026. The 4 GW plant in Mundra uses imported coal to generate power, but it had ceased operations last year.

The plant has now executed supplementary power purchase agreements with Gujarat Urja Vikas Nigam, and with Maharashtra, Rajasthan, Punjab, and Haryana.

The MoP also directed the plant to maintain coal stock as per the existing to ensure it operates at full capacity. The plant must submit a weekly report to MoP for the generation and sale of power. Non-compliance with the directions will attract penalties.

It also said Section 11 may also be extended to other power plants if the need arises.

The directive comes amid rising power demand in the country. The Central Electricity Authority (CEA) has projected a peak power demand of 289 GW for the financial year 2026-27. In January, the peak power demand touched 245 GW. India met a peak demand of 242.49 GW in FY 2025-26.

The authorities maintain that there will be no power shortage in the coming months, but the government’s preparedness to meet demand will be tested. Temperatures in many parts of the country were 4-12 degrees above average in March. The Met Department had earlier forecast heat waves until May, but has since said temperatures will remain cooler at least until the second week of April.

Adding to the concerns about how the power situation will evolve is the impact of the ongoing US-Israel war on Iran. With the Strait of Hormuz choked, liquefied petroleum gas (LPG) imports from the Middle East have dwindled, leading to a shortage of LPG for commercial and home cooking purposes.

The use of electric stoves in homes has increased substantially, and if the war doesn’t end soon and the gas shortage worsens, the electricity grid could come under further stress if commercial kitchens also switch to electric.

Gas-fired power generation accounts for a small share in India’s overall power mix, but it comes into play during summer evenings when solar generation drops. About 8 GW of gas-fired thermal power is used to offset the shortages and rebalance the grid. To what extent this will be possible in the wake of the gas shortage this year is a question mark. Already, the 370 GW Yelahanka gas-based power station in Bengaluru has been shut following the suspension of supplies by state-owned natural gas company GAIL in early March.

Despite the annual growth in renewable capacity additions, India continues to expand its coal-based capacity. As of February 2026, about 8.8 GW of coal capacity was added in FY 2025-26, against a target of roughly 12 GW. India plans to add 34.7 GW of coal-based capacity by FY 2030-31, comprising 18.36 GW in the central sector, 9.9 GW in the state sector, and 6.4 GW in the private sector, according to CEA.