The Ministry of Coal has pushed back against reports claiming Punjab’s power plants face coal shortages, saying the Centre has ensured adequate fuel supply through multiple channels since Punjab State Power Corporation Limited’s captive mine began operations. The statement addresses concerns about reduced electricity generation at Punjab’s thermal stations.
What coal is available and how
Punjab operates three thermal power plants with a combined capacity of 2,300 MW: Guru Hargobind TPS at Lehra Mohabbat, Goindwal Sahib TPP, and Ropar TPS. As of 4 September 2026, coal stocks at these plants stood at around 117% of the required level, indicating more than sufficient reserves.
The government has enabled private power companies in Punjab to use coal from PSPCL’s Pachhwara Central Coal Mine, subject to payments to Jharkhand state. Non-PSPCL operators like Nabha Power Limited and Talwandi Sabo Power Limited can access up to 50% of annual production from this mine after the needs of designated industrial users are met.
Coal India Limited subsidiaries have made substantial offers to Punjab-based private operators: Central Coalfields Limited offered 5 lakh tonnes to Nabha and Talwandi Sabo in March 2026, while Bharat Coking Coal Limited offered 3.5 lakh tonnes to Nabha. However, actual lifting has lagged considerably behind these offers.
Why generation remains low despite adequate coal
PSPCL’s own plants operated at just 42% of capacity during August 2026, despite comfortable coal availability. In contrast, Nabha Power Limited achieved 93% capacity utilization during the same month using coal from CIL sources, suggesting coal supply is not the limiting factor for power generation in the state.
The Ministry notes that private operators have not been lifting all the coal already offered to them, pointing to this as a reason for underutilization alongside operational issues at PSPCL plants.
What this means for you
Punjab faces no coal shortage according to this statement, and adequate supplies remain available for both state-run and private power stations. However, the low output from PSPCL plants appears to stem from operational factors rather than fuel constraints. Better performance from existing plants and faster coal pickup by private companies would be needed to improve the state’s power generation and address electricity requirements.