NTPC is expected to procure up to 10 million tonnes (MT) of coal from private-sector miners in the second half of FY27 as higher thermal-power generation and stretched domestic supplies put pressure on its fuel position, according to people cited in a report by The Hindu BusinessLine.
The state-run power generator plans to source about 10-15 MT of coal annually from commercial miners from next year, with around 10 MT expected to arrive during the second half of FY27. Orders have been placed and deliveries are expected to begin soon, one of the sources said.
The procurement will be the second such purchase by NTPC from commercial miners. The company procured 4 MT from the private sector in FY25. The move comes as NTPC anticipates a coal requirement of around 300 MT in FY27, an increase of 11 per cent over its requirement in FY26.
Most of NTPC’s coal is supplied through fuel supply agreements with state-run mining companies. Around 50 MT is expected to come from the company’s captive mines, while the balance will be sourced through other supply arrangements, according to the report.
The pressure on fuel availability has coincided with stronger thermal-power demand. NTPC recorded year-on-year generation growth of about 13 per cent to 117.9 billion units during July-September 2026. Its cumulative running plant load factor, or capacity utilisation, was around 76 per cent, while generation growth on a year-to-date basis stood at 9.5 per cent year on year.
Sources attributed the supply shortage partly to higher demand for thermal power following a decline in hydroelectricity generation. They also pointed to increased electricity consumption during evening and night hours, which the report linked to the El Niño effect. The attribution indicates that NTPC’s procurement response is connected both to generation demand and to changes in the availability of other sources of electricity.
The wider coal position across India’s power system is also under strain. As of October 5, roughly 47 per cent of the 191 power plants using domestic and imported coal were facing critical stock levels. These plants, with combined capacity of about 225 GW, held 20.58 MT of coal against a daily requirement of 3.14 MT.
For consumers, the procurement decision is part of the supply chain behind the electricity used by homes, offices, factories and public infrastructure. The figures also show the operational dependence of the power system on continuous coal availability, even as generation demand rises and hydroelectric output varies. NTPC’s next immediate step is the start of deliveries under the orders placed with commercial miners.
