India has issued a government order instructing companies to extend operations of imported coal-based plants running at full capacity until October 15 in response to the anticipated high demand for electricity in summer.

The country had decided before to extend the operation of imported coal-based power plants by eight months until June this year. In addition, India also urged companies to activate underutilized gas-based power plants in May and June, according to another government order on April 12.

Electricity consumption in India increased 8% year on year during the recently concluded financial year (April 2023-March 2024) and the demand is expected to surge during the upcoming hot summer season.

India's government asked companies like Tata Power and Adani Power, which operate imported coal-fired plants with a combined capacity of nearly 16 GW, to continue their operations. Initially, these plants were permitted to operate until June 30.

India possesses approximately 24 GW of gas-based power plants that have remained idle or underused for several decades due to fuel scarcity. The order states that power stations will receive a two weeks' advance notice regarding the impending requirements, allowing them to import the necessary gas.

Gas-based power plants are essential to meet the projected surge in power consumption during the summer months. Major gas-based power station companies such as Torrent and NTPC are included in this directive.

(Writing by Riley Liang  Editing by Harry Huo)
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