Government Plans 97 GW Coal; Lignite Thermal Power Capacity Boost By 2034-35

In a written reply to the Lok Sabha, Minister of State for Power Shripad Yesso Naik revealed that the country’s thermal capacity stood at 211,855 MW as of March 31, 2023.

To meet the projected demand of approximately 307,000 MW by 2034-35, the government intends to commission at least 97,000 MW of additional coal and lignite-based power plants.

India’s overall installed electricity generation capacity reached 485 GW by June 2025.

According to the National Electricity Plan (Generation) published in May 2023, total installed capacity is expected to rise to around 870 GW by 2031-32.

The government has commissioned about 11,680 MW of thermal capacity since April 2023.

Currently, 38,935 MW of thermal capacity (including 5,695 MW of stressed projects) is under construction, with contracts for a further 15,440 MW awarded in FY 2024-25, set for upcoming development.

Planning & Construction

To fulfil future demand, 35,460 MW of coal and lignite capacity is at various planning stages.

In addition, hydroelectric projects with a combined capacity of 13,463.5 MW are under construction, while 9,802 MW are in planning, targeted for completion by 2031-32.

Renewable energy capacity is rapidly expanding, with 158,450 MW currently under construction, including 74,150 MW solar, 30,080 MW wind, and 53,750 MW hybrid power.

Authorities are planning another 62,000 MW, expecting to complete it by 2029-30.

Energy storage projects are also progressing. Pumped Storage Projects (PSPs) totalling 8,250 MW/49,500 MWh are under construction.

Authorities have approved an additional 5,780 MW/34,680 MWh of PSP capacity, but construction has not yet started. They are currently bidding for 3,500 MW/21,000 MWh of this capacity.

Battery Energy Storage Systems (BESS) of 15,829 MW/51,106 MWh are also under development or bidding.

Nuclear power capacity of 6,600 MW is under construction and targeted for completion by 2029-30. A further 7,000 MW is in planning and approval stages.

Minister Naik highlighted growing electricity demand driven by rapid economic growth, expanding household electrification, urbanisation, rising living standards, and increased use of energy-intensive technologies like air conditioners and electric vehicles (EVs).

The mid-term review of the 20th Electric Power Survey estimates EV charging demand will reach 63,651 million units by FY 2031-32, roughly 2.35% of total projected electricity demand.

The government assures that adequate generation capacity is planned to meet these demands.

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