This document summarizes the Indian Ministry of Power's response to Lok Sabha Unstarred Question No. 714, answered on July 24, 2025, regarding new thermal power units in Punjab. The query specifically asked about the approval status of three proposed 800 MW thermal power units (two at Ropar and one at a new location), coal transportation solutions, commissioning timelines, and the rationale behind the decision considering Punjab's power demand.
The Minister of State in the Ministry of Power clarified that no such proposal for these specific units had been received by the Ministry. The response further emphasizes that, according to Section 7 of the Electricity Act, 2003, power plant establishment is a delicensed activity, and generating companies can establish and maintain generating stations without a license if they comply with grid connectivity standards. Ensuring adequate generation capacity to meet a state's electricity demand falls under the purview of the respective State Government/State Power Utility.
However, the Ministry of Power outlined several measures taken by the Government of India to address broader coal supply issues: (i) Coal linkage rationalization to reduce coal transportation distances; (ii) Flexibility in coal utilization, allowing State/Central Gencos to allocate coal to their most efficient plants and save on transportation costs; and (iii) The Coal Logistic Plan and Policy launched by the Ministry of Coal to enhance supply chain efficiency, reduce costs, and promote sustainability through critical railway projects improving coal transportation.
Key Entities Referenced
Ministry of Power: The Indian government ministry responsible for power sector development.
Lok Sabha: The lower house of the Parliament of India.
Punjab: A state in Northern India.
Ropar: A city also known as Rupnagar in Punjab, India.
Shripad Naik: The Minister of State in the Ministry of Power.
Electricity Act, 2003: An act of the Parliament of India to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity.
Ministry of Coal: The Indian government ministry responsible for coal sector development.
SHRI CHARANJIT SINGH CHANNI: Member of Parliament who asked the question
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.714
ANSWERED ON 24.07.2025
NEW THERMAL POWER UNITS IN PUNJAB
714. SHRI CHARANJIT SINGH CHANNI:
Will the Minister of POWER
be pleased to state:
(a) whether the Union Government has approved the setting up of three new thermal
power units of 800 MW each in the State of Punjab including two units at Ropar also known
as Rupnagar and one at a new location and if so, the details thereof;
(b) whether the Government has resolved coal transportation issues by relaxing haulage
distance limits or through other measures and if so, the likely impact of these steps on
uninterrupted fuel supply and power generation;
(c) the expected timeline for commissioning these new units and the total additional
power generation capacity to be added; and
(d) whether this decision has been taken in view of Punjab’s rapidly rising power demand
and fuel supply constraints and if so, the mechanisms put in place to ensure timely
implementation and efficient monitoring of project?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) to (d) : No such proposal has been received in the Ministry of Power. However, as per
Section 7 of Electricity Act, 2003 setting up of a power plant is a de-licensed activity in the
country. Any generating company may establish, operate and maintain a generating station
without requiring a license under Electricity Act, 2003 if it complies with the technical
standards relating to connectivity with the grid.
The availability of adequate generation capacity to meet the electricity demand in a
State lies under the purview of the respective State Government/ State Power Utility.
Government of India has taken various measures to address coal supply issues which
are as under:
i. Rationalization of coal linkage: Rationalization of coal linkages is a policy
introduced in order to reduce the distance in transportation of coal from the coal
mines to the consumer.
ii. Flexibility in coal utilization: The Government of India in May, 2016 allowed
flexibility in utilization of domestic coal by State/Central Gencos amongst their
generating stations to reduce the cost of power generation by allocating more
coal to their most efficient plants as well as by saving in transportation cost.
iii. Coal Logistic Plan and Policy: Ministry of Coal had launched Coal Logistic Plan
and Policy to enhance supply chain efficiency, reduce costs & promote
sustainability. Under this plan, critical Railway projects have been identified,
which are essential for improving rail connectivity, ensuring timely coal supply,
and reducing logistics costs, thereby enhancing the overall efficiency of coal
transportation across the country.
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