The Ministry of Power aims to establish an additional minimum of 97,000 MW of coal and lignite-based thermal power generation capacity in India to address the country’s anticipated electricity demand. By 2034–35, studies by the Central Electricity Authority project a need for nearly 3,07,000 MW of thermal capacity, compared to the current 2,11,855 MW installed capacity as of March 31, 2023. Minister of State for Power Shripad Naik informed the Rajya Sabha that the new capacity will bridge this gap.
As of January 20, 2026, around 17,360 MW of thermal capacity has been commissioned since April 2023. Additionally, 39,545 MW of thermal capacity, including 4,845 MW of stressed thermal power projects, are under construction. Contracts for 22,920 MW have been awarded and are awaiting construction. Moreover, 24,020 MW of coal and lignite-based potential capacity are in various planning stages across the country.
Minister Naik highlighted that the projected Plant Load Factor (PLF) of coal-based plants by 2031-32 is estimated at approximately 61%. However, the PLF will be influenced by factors like electricity demand growth, actual capacity additions of coal and renewable energy sources. The Central Electricity Authority conducts generation expansion planning studies to determine the optimal mix of generation resources, including coal, hydro, solar, wind, storage, and nuclear, to meet future electricity needs.
