BCCL – CCL come to Punjab power plants’ rescue, but coal lifting lags

Coal availability may not be the real constraint behind lower power generation in Punjab, with Central coal companies having already stepped in to support the State’s power plants. However, the booking and lifting of coal offered by Coal India subsidiaries Central Coalfields Limited (CCL) and Bharat Coking Coal Limited (BCCL) have remained well below the quantities offered.

According to the Ministry of Coal, CCL offered 5 lakh tonnes (LT) of coal to Punjab-based Independent Power Producers (IPPs) — Nabha Power Limited (NPL) and Talwandi Sabo Power Limited (TSPL) — under the Rail-cum-Road (RCR) mode on March 30, 2026. Against this offer, around 4.1 LT has been booked and approximately 3.1 LT lifted so far.

BCCL also offered 3.5 LT of coal to NPL, but only around 1.3 LT has been booked and 0.98 LT lifted to date.

The figures indicate that while Central coal companies have made additional coal available to Punjab’s private power generators, the entire offered quantity has not yet translated into actual movement to the plants.

Centre facilitates coal from Punjab’s captive mine

The Ministry of Coal, in a clarification issued on September 6, said reports attributing reduced generation at Punjab’s thermal power plants to inadequate coal supply from the Centre do not present the complete picture.

The Centre said it has proactively facilitated coal movement to Punjab-based IPPs following commencement of production from the Pachhwara Central Coal Mine, the captive mine of Punjab State Power Corporation Limited (PSPCL).

Coal from the Pachhwara Central mine can be utilised by IPPs not owned by PSPCL, including NPL and TSPL, up to 50% of annual production, after meeting the requirements of specified end-use plants and subject to fulfilment of statutory payment obligations to Jharkhand.

PSPCL plants have adequate coal stock

The Ministry said PSPCL operates three thermal power plants — Guru Hargobind Thermal Power Station at Lehra Mohabbat, Goindwal Sahib Thermal Power Plant and Ropar Thermal Power Station — with a combined capacity of 2,300 MW.

As of September 4, 2026, coal stock at PSPCL’s plants stood at around 117% of the normative requirement.

Despite this comfortable stock position, the average Plant Load Factor (PLF) of PSPCL’s plants during August was only around 42%, suggesting that low generation cannot be attributed simply to inadequate coal stocks at the plant end.

The performance of NPL offers a contrasting picture. The Punjab-based IPP recorded a PLF of around 93% in August, supported by coal supplies from CIL sources.

The Ministry has therefore stressed that timely lifting of coal already offered by CIL subsidiaries, along with better utilisation of PSPCL’s own generating capacity, will be crucial for improving power generation in Punjab.

The developments also underline that the issue facing Punjab is not merely one of coal availability, but also of booking, lifting and utilisation of the coal already made available by the Central coal companies.