State-run NTPC is expected to buy as much as 10 million tonnes (MT) of coal from private sector miners in H2 FY27 as it faces a supply crunch due to higher coal burn.
Sources said that the country’s largest power generator faces some supply shortage on account of higher demand for thermal power due to a decline in hydro power generation and rise in electricity demand in the evening and night hours, which can be blamed on the El Niño effect.
“NTPC plans to source 10-15 MT coal from commercial miners annually from next year. In the second half of FY27 year about 10 MT may come from commercial mines. Orders have been placed and delivery will start soon,” said one of the sources.
This is the second time the Maharatna company will purchase coal stocks from commercial miners. In FY25, the PSU procured 4 MT from the private sector.
NTPC expects a coal requirement of around 300 MT in FY27, up 11 per cent from FY26. Out of this most of the supply comes fuel supply agreements from state-run miners while the rest around 50 million tonnes comes from captive mines.
The behemoth reported around 13 per cent y-o-y growth in generation to 117.9 billion units (BUs) in July-September 2026. The cumulative running plant load factor (PLF), or capacity utilisation at NTPC’s plants is around 76 per cent.
On a year to date basis, NTPC’s power generation has grown by 9.5 per cent y-o-y.
Meanwhile, India’s coal supply is stretched. As of October 5, roughly 47 per cent of the plants based on domestic and imported coal out of the 191 plants with a capacity of about 225 GW are facing critical stocks. These plants have a stock of 20.58 MT against a daily requirement of 3.14 MT.
Published on October 6, 2026
