India will require about 307 GW of coal and lignite-based power capacity by 2034–35, up from 211.9 GW in March 2023, as electricity demand rises, the government informed Parliament. To meet this requirement, the Ministry of Power has planned an additional 97 GW of new thermal capacity, Minister of State for Power Shripad Naik said in a written reply in the Rajya Sabha.
Since April 2023, 17.36 GW of coal-based capacity has already been commissioned. Another 39.5 GW is under construction, including 4.8 GW of stressed projects, while contracts for 22.9 GW have been awarded and 24 GW is at various planning stages. The Central Electricity Authority (CEA) carried out generation expansion studies considering capital cost, fuel price, operations and maintenance, and technology life to determine the optimal mix of coal, renewables, nuclear and storage.
The government expects the Plant Load Factor (PLF) of coal plants to be around 61 percent by 2031–32, depending on demand growth and renewable additions. The Weighted Average Rate of Sale of Power (WARSP) from existing coal stations over the past three years ranged between ₹4.36 and ₹4.58 per unit, with the lowest tariff at ₹1.52.
New coal projects selected through Tariff Based Competitive Bidding (TBCB) in 2025 discovered tariffs of ₹5.38–₹6.30 per unit. In comparison, Firm and Dispatchable Renewable Energy (FDRE) bids awarded by SECI in August 2024 were priced at ₹4.98–₹4.99. The minister cautioned that a direct comparison is inappropriate due to differences in dispatch profile, fuel risk, contract structure and system roles.
The expansion model evaluates coal, solar, wind and storage together to ensure reliable supply as demand grows, Naik said, stressing that technology characteristics and system requirements guide capacity planning.
