In a strategic supply breakthrough for India’s energy infrastructure, a landmark domestic coal arrangement has fortified fuel availability at the 1320 MW Khurja Super Thermal Power Plant (STPP) in Bulandshahr, Uttar Pradesh, potentially smoothing operational bottlenecks that have shadowed the newly commercialised facility. The move underscores the interplay between indigenous resource allocation and grid reliability as urban and industrial power demands rise.
State-owned THDC India Limited (THDCIL) confirmed that the Khurja STPP — part of its maiden foray into coal-based generation — has begun receiving coal directly from the Amelia Coal Mine rather than relying on short-term spot or external sources. This internal linkage is expected to reduce logistical uncertainties and curtail fuel costs, enhancing dispatch consistency for industrial and residential consumers in the National Capital Region and adjoining states. The Khurja STPP, comprising two units of 660 MW each, reached commercial operation in stages during the past year, with the first unit declared operational in January 2025 and the second later in September 2025. Its coal requirement is substantial; reliable supply chains are central to maintaining planned generation levels, especially as peak season demand and grid commitments grow.
The Amelia Coal Mine, located in Singrauli district, Madhya Pradesh, was developed specifically to support the Khurja plant’s fuel needs. The dispatch of the first rake — a full load of coal moved by rail — represents a material shift in the plant’s operational logistics. Analysts highlight that this shift should help reduce transit lead times and coal stock volatility at the power station, which previously faced challenges common to new thermal installations, including freight timing and third-party supply risk. Fuel security at thermal plants remains a perennial concern in India’s energy landscape, where coal still accounts for a dominant share of baseload generation. Ensuring that captive plants like Khurja STPP have dependable access to coal de-risk both revenue stability for PSU investors and consistent power delivery to urban, industrial and rural consumers. This is particularly relevant as the grid integrates more variable renewable sources, requiring consistent baseload support.
Beyond immediate operational benefits, domestic coal sourcing supports broader policy goals of self-sufficiency and reduced dependence on imported fuel. It also aligns with emerging regulatory frameworks that nudge power producers toward optimised supply chains and lower working capital exposure linked to fuel-price swings. Industry experts suggest that such internally linked supply models could become a template for future thermal projects. However, thermal power remains carbon-intensive, and India’s transition to cleaner energy pathways will require parallel investment in renewables and grid flexibility solutions. For now, the improved coal linkage to Khurja STPP shores up capacity at a time when reliable electricity underpins urban growth corridors and manufacturing clusters, particularly in North India.
Looking ahead, THDCIL and policymakers will need to balance immediate fuel security with longer-term decarbonisation imperatives, ensuring that India’s energy mix evolves without compromising grid stability. Monitoring coal logistics performance and its impact on generation economics will be critical as the Khurja facility settles into its role as a key regional power hub.
