- Government weighs extending Section 11 beyond September
- Recent imports support comfortable CGPL coal availability
India’s power ministry is considering extending Section 11 directions for Tata Power’s 4,000 MW Coastal Gujarat Power Ltd (CGPL) Mundra plant through December 2026, potentially keeping the imported-coal-based station operating at full capacity as electricity demand remains elevated. The current directions expire on 30 September.
The development assumes significance against the backdrop of strong power demand, tightening coal inventories across much of India’s thermal fleet and elevated short-term electricity prices.
BigMint’s vessel-flow, port-stock and power-plant inventory data indicate that CGPL enters any potential October-December extension with a substantial coal buffer, supported by continued seaborne procurement.
Government looks to keep Mundra available
Section 11 of the Electricity Act allows the government, under extraordinary circumstances, to direct a generating company to operate a power station in accordance with its instructions.
The government directed the 4,000 MW CGPL plant to operate from 1 April 2026, making electricity available to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The directions were subsequently extended until 30 September.
According to the latest report, the power ministry is now considering another extension through December amid persistently high electricity demand. CGPL already has a supplementary power purchase agreement (SPPA) with Gujarat’s GUVNL, while discussions with Rajasthan, Haryana and Punjab are reportedly at advanced stages.
The SPPAs are important because Mundra’s dependence on imported coal exposes generation costs to international coal prices and freight. Tata Power has previously highlighted that its original PPAs did not adequately provide for pass-through of current imported-coal costs.
Strong demand increases Mundra’s system importance
The possible extension comes during an unusually tight September power market.
BigMint analysis shows average daily maximum electricity demand during 1-20 September 2026 at around 251.8 GW, up approximately 17% y-o-y, while the period’s maximum reached around 269 GW.
Coal generation increased 17.3% y-o-y and accounted for roughly three-quarters of incremental generation. Renewable generation also increased strongly, but hydro output declined around 15%.
At the same time, India’s power-plant coal inventories declined from 28.64 mnt on 1 September to 22.88 mnt on 20 September, a drop of around 20%. The number of plants classified as critically stocked increased from 45 to 75.
Against this background, keeping another 4,000 MW of coastal imported-coal generation available reduces incremental dependence on the already heavily utilised domestic-coal fleet.
Tata continues importing coal into Mundra
BigMint’s vessel data indicate that Tata Power has maintained a diversified imported-coal procurement programme.
Recent identifiable arrivals have included coal from Indonesia, Mozambique, Russia and South Africa.
During September, the Platos arrived at Mundra with around 165,000 t of Russian non-coking coal from Vanino for Tata Power, followed by the Elijah with around 79,149 t from Richards Bay, South Africa.
Together, these two identifiable September cargoes represent approximately 244,000 t of fresh coal supply. They followed earlier imports, including around 187,405 t of Mozambique-origin coal for Tata Power during late August. BigMint’s earlier vessel analysis also identified substantial Indonesian supply into Mundra.
The changing origin mix suggests that Tata is spreading procurement across several seaborne sources rather than depending excessively on any single market.
Port stocks show continued evacuation
Mundra’s port inventories provide another useful indicator of the coal supply chain supporting the power complex.
CGPL/Tata’s non-coking coal stock at Mundra port increased to around 622,000 t in Week 35, from approximately 431,000 t in the preceding week.
The inventory subsequently declined to 518,010 t in Week 37 and 414,408 t in Week 38.
This drawdown should not, however, be viewed in isolation as weakening coal availability.
Coal is continuously being transferred from the port to the power station while CGPL operates. Falling port inventory can therefore coexist with comfortable stocks at the plant itself.
Earlier BigMint analysis reinforces this point. Mundra received around 1.44 mnt of identifiable thermal coal during a previous reporting window. Despite port stocks increasing by nearly 0.59 mnt, indicative evacuation was still estimated at around 0.85 mnt, showing substantial coal movement alongside replenishment.
CGPL holds 1.13 mnt at power station
The strongest indication of CGPL’s immediate fuel position comes from CEA’s daily power-plant coal-stock data.
As of 20 September, Mundra UMPP held approximately 1.133 Mnt of coal at the plant, against a normative stock requirement of around 658,000 t.
That placed CGPL’s inventory at 172% of normative requirements. Its normative daily coal requirement at 85% PLF was around 32,900 t.
Plant inventory has actually declined during September as generation continued. On 2 September, CEA reported approximately 1.377 mnt, equivalent to 209% of normative requirements.
The decline to 1.133 mnt by 20 September therefore reflects continuing coal burn rather than inadequate fuel availability.
CGPL’s position contrasts sharply with much of India’s domestic-coal-based generating fleet.
By 20 September, domestic-coal-based plants held around 20.36 mnt, equivalent to only 37% of normative requirements, while 65 plants in this category were classified as critical.
CGPL, by comparison, was holding 172% of normative inventory at the power station, alongside another 0.41 mnt attributed to CGPL/Tata at Mundra port.
This distinction is increasingly important.
Mundra effectively brings its own seaborne fuel supply chain into India’s power system. Higher generation from the station does not place the same incremental pressure on Coal India supplies and inland railway logistics as additional generation from many domestic-coal stations.
Outlook
The potential Section 11 extension through December therefore comes at a time when CGPL appears relatively well positioned physically to sustain high generation.
Recent Russian and South African arrivals, continued diversification of import origins, more than 1.1 mnt of coal already at the power station and additional stocks at Mundra port provide a meaningful fuel buffer.
For India’s power system, keeping 4,000 MW of imported-coal capacity available could also provide additional dispatchable generation during a period when hydro generation has been weak, domestic power-plant coal inventories have declined and electricity availability has been particularly tight outside solar hours.
The key issue ahead may consequently be less about whether Mundra has sufficient coal to operate, and more about the economics of doing so.
With imported coal substantially more expensive than domestic fuel, progress on supplementary PPAs and mechanisms allowing appropriate fuel-cost pass-through will determine how sustainably CGPL can continue operating at high utilisation once the present Section 11 directions expire on 30 September.
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