NTPC seeks private coal purchases to prevent fuel shortages

NTPC, India’s largest power producer, is in discussions to purchase up to 15 million metric tons of coal from private mining companies to mitigate potential fuel shortages. The move aims to prevent supply gaps during the 2026/27 fiscal year following a significant drop in coal reserves at the company’s power plants. Stocks fell from approximately 18 million metric tons in April to 5.5 million metric tons in early October, driven by high electricity generation and heavy rains that hindered mining and transport.

To further stabilize supply, NTPC plans to utilize roughly 50 million metric tons from its own captive mines. The company’s total coal requirement for the upcoming fiscal year is projected to reach nearly 300 million metric tons. While the federal power ministry has directed over 100 captive coal-fired plants to operate at maximum capacity to address critical stock levels, NTPC is also diversifying its energy portfolio. The company’s subsidiaries, NTPC Renewable Energy and NTPC Green Energy, have recently issued tenders for a one-gigawatt solar project in Andhra Pradesh and a battery storage system, respectively.