NTPC, India’s largest electricity producer, has procured 3 million tonnes of coal from private sector miners over the past six months. This shift is part of a broader strategy to ensure steady coal availability through doorstep delivery, especially ahead of peak summer demand.
A senior NTPC official noted that the company is now using a new coal sourcing approach that relies on commercial miners selected via competitive bidding. These suppliers are responsible for delivering coal directly to NTPC’s designated sites, streamlining logistics and reducing costs.
Traditionally, NTPC has sourced a major portion of its coal from Coal India, along with its own captive mines and imports. The latest procurement model marks a departure from that pattern, focusing instead on private sector participation through auctions.
“In this new method, only commercial coal miners are eligible to bid. Coal India is not allowed to participate, and successful bidders cannot supply coal sourced from Coal India,” the official explained. In recent months, NTPC has issued several tenders under this model, resulting in the purchase of around 3 million tonnes of thermal coal.
Industry observers say the shift could have long-term implications for Coal India, as NTPC is its single largest customer. If the new model proves successful, it may gradually reduce NTPC’s dependence on traditional suppliers.
The change comes at a critical time, with the government estimating a record peak power demand of 277 GW during the summer of 2025. For the upcoming financial year (FY26), Coal India has set an ambitious coal production target of 875 million tonnes.
Analysts believe the new strategy could open up significant market opportunities for private coal miners. Several firms—such as NLC India, JSW Energy Utkal, Sarda Energy and Minerals, SM Steels and Power, Jharkhand Exploration and Mining Corporation, and others—have already secured coal blocks through commercial mining auctions held by the government.
NTPC’s total power generation reached 438.6 billion units in FY25, while its installed capacity crossed 80 GW. From its own mines, the company extracted 45 million tonnes of coal last year. Since the launch of commercial coal mining in 2020, the Ministry of Coal has auctioned 125 blocks, together holding an annual production potential of over 273 million tonnes. Once operational, these mines are expected to contribute significantly to domestic coal output and energy security. These projects are projected to generate close to ₹38,767 crore in yearly revenue, draw in capital investments worth ₹40,960 crore, and create nearly 4.7 lakh jobs across the country.
NTPC Limited, formerly known as National Thermal Power Corporation, is India’s largest power utility, established in 1975 under the Ministry of Power, Government of India. The company is primarily engaged in the generation and sale of electricity to state-owned and private sector utilities. NTPC operates a vast network of thermal, hydro, and renewable energy plants across India, with a total installed capacity of over 68,000 MW. The company’s commitment to providing affordable and sustainable energy plays a significant role in the country’s economic development by ensuring reliable power supply to industries, businesses, and households alike.
NTPC is also actively working towards reducing its carbon footprint by increasing its focus on renewable energy sources. The company has set ambitious targets to diversify its energy mix, including wind, solar, and hydroelectric power.
As part of its commitment to sustainability, NTPC aims to become a leader in clean energy solutions, with plans to achieve a significant share of its capacity from non-fossil fuel sources in the coming years. Furthermore, NTPC continues to invest in modernizing its operations with cutting-edge technology, ensuring efficient energy production and contributing to India’s energy security.
