Coal Ministry pushes UP to develop captive block for thermal power fuel security
Synopsis
More than a decade after Uttar Pradesh was allotted a 973-million-tonne captive coal block, it remains untouched — and the Coal Ministry has run out of patience. With UP's thermal plants running at just 48% PLF despite adequate coal stocks, the Centre's message is blunt: the power problem isn't a supply failure, it's a state governance failure.
Key Takeaways
The Ministry of Coal on 17 September 2026 advised Uttar Pradesh to urgently develop the Saharpur Jamarpani captive coal block in Dumka, Jharkhand .
The block holds reserves of more than 973 million tonnes and was allotted to UPRVUNL in 2015 — yet remains unoperationalised after over a decade.
14 other coal blocks allotted on or after the same date have already commenced production for their respective plants.
Coal stock at UPRVUNL plants rose from 7.25 LT on 1 September to 8.41 LT by 15 September ; none of the plants were in the critical-stock category.
Despite adequate stock, UPRVUNL's Plant Load Factor (PLF) stands at only around 48% , pointing to operational — not fuel — constraints.
CIL continues to fully meet UP's coal requirement, but the Centre is pushing the state to reduce this dependence through its own captive resource.
The Ministry of Coal on Thursday, 17 September 2026 formally advised Uttar Pradesh to prioritise the early development of its captive coal block, warning that the state's long-term fuel security for its thermal power plants cannot depend indefinitely on Coal India Limited (CIL). The advisory comes amid media reports of a power shortage in the state linked to coal supply disruptions — claims the ministry has pushed back on with data.
Ministry's Clarification on Current Stock
Addressing the reported shortage directly, the ministry stated that as of 15 September, none of the thermal power plants operated by Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) was in the critical-stock category. Coal stock at UPRVUNL plants stood at 7.25 lakh tonnes (LT) on 1 September and climbed to 8.41 LT by 15 September. Over the preceding seven days, average daily coal receipt of approximately 0.90 LT exceeded average daily consumption of around 0.83 LT, indicating a steady stock build-up.
The Saharpur Jamarpani Block: A Decade of Inaction
The ministry pointed to the Saharpur Jamarpani coal block in Dumka district, Jharkhand, as the core of the problem. The block, which holds reserves of more than 973 million tonnes, was allotted to UPRVUNL in 2015 under the Coal Mines (Special Provisions) Act, 2015, specifically to meet the coal requirements of Uttar Pradesh's thermal power projects. More than a decade after the allotment, the ministry noted, no meaningful progress has been made towards operationalising the block — attributing the delay to 'a lack of requisite initiative by UPRVUNL.'
Notably, 14 other coal blocks allotted for captive power-sector use on or after the same date have already been operationalised and are producing coal for their respective end-use plants — making UP's inaction a clear outlier.
Low Plant Load Factor Points to Operational Gaps
The ministry flagged a telling disconnect: despite coal stocks having crossed 8 LT, the current-month Plant Load Factor (PLF) of UPRVUNL's thermal plants stands at only around 48 per cent. 'The lower generation during the current month cannot, therefore, be attributed to inadequate coal availability at the plant end,' the ministry stated, adding that the state must address operational constraints at its generating stations and ensure optimal utilisation of available stock.
Unloading constraints at various plants have also been cited as a limiting factor, periodically restricting rake placement by the Railways and capping further augmentation of coal supplies.
What UP Needs to Do Next
The ministry's advisory is unambiguous: CIL will continue to meet the state's current coal requirement, but UP must urgently move to operationalise its own captive resource. With 973 million tonnes of reserves lying idle at Saharpur Jamarpani, the state has a substantial buffer — if it acts. This comes amid broader national concerns about thermal power plant preparedness ahead of the winter demand cycle, when generation targets typically tighten. The Centre's intervention signals growing impatience with states that remain structurally dependent on CIL despite holding significant captive reserves.
Point of View
But of a state's failure to use what it already has. UP was handed a 973-million-tonne coal reserve in 2015 and has done nothing with it while 14 peer states operationalised their blocks. The 48% PLF figure is the most damning data point: coal is available, but the plants aren't generating — which means the power problem in India's most populous state is rooted in operational dysfunction, not fuel scarcity. Until UP fixes both, the Centre's advisories, however pointed, will struggle to move the needle.
NationPress
17 Sept 2026
Frequently Asked Questions
What is the Saharpur Jamarpani coal block and why does it matter for Uttar Pradesh?
The Saharpur Jamarpani coal block, located in Dumka district of Jharkhand, holds reserves of more than 973 million tonnes and was allotted to UPRVUNL in 2015 to meet the coal requirements of UP's thermal power plants. Despite being over a decade old, the allotment has not been acted upon, leaving UP entirely dependent on Coal India for its power sector fuel.
Is Uttar Pradesh actually facing a coal shortage right now?
The Ministry of Coal says no. As of 15 September, none of UPRVUNL's thermal power plants were in the critical-stock category, and coal stocks rose from 7.25 lakh tonnes on 1 September to 8.41 lakh tonnes by 15 September. The ministry attributes lower power generation to operational constraints at the plants, not to inadequate coal availability.
Why is UPRVUNL's Plant Load Factor so low despite adequate coal stocks?
UPRVUNL's PLF stands at approximately 48% even as coal stocks exceed 8 lakh tonnes, which the Coal Ministry says points to operational bottlenecks at the generating stations rather than a fuel problem. The ministry has urged the state to address these constraints and ensure optimal utilisation of available coal.
How does UP compare with other states that received captive coal blocks?
14 other coal blocks allotted for captive use in the power sector on or after the 2015 date of UP's allotment have already been operationalised and are producing coal. UP remains the outlier, with no progress on the Saharpur Jamarpani block despite holding the largest unactivated captive reserve.
What has the Coal Ministry asked Uttar Pradesh to do?
The ministry has formally advised UP to prioritise the early development of the Saharpur Jamarpani captive coal block to build long-term fuel security and reduce dependence on Coal India. It also asked the state to resolve unloading constraints at its plants and improve operational efficiency to raise the PLF from its current ~48% level.
