India plans at least 97 GW additional coal and lignite capacity by FY35: Naik

India plans to add at least 97 GW coal and lignite power capacity by FY35 to meet rising demand, MoS Power tells Lok Sabha
Alt="Shripad Yesso Naik"
Minister of State (MoS) for Power Shripad Yesso Naik (File photo)Energy Watch
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New Delhi: The Ministry of Power has envisaged to set up an additional minimum 97,000 megawatts (MW) of coal and lignite-based thermal power capacity by 2034–35 to meet the country’s projected electricity needs, Minister of State for Power Shripad Yesso Naik told the Lok Sabha on Thursday.

Responding to a written question during the ongoing Monsoon Session of Parliament, the minister said the move is aimed at addressing the expected rise in power demand driven by factors such as economic growth, increased household electrification, urbanisation, and the growing use of energy-intensive technologies including air conditioners and electric vehicles (EVs).

EVs to account for 2.35% of electricity demand by FY32

Naik said the government is aware that EV adoption will contribute to higher electricity demand, but added that this increase is being accounted for in the country’s generation planning. “As per midterm review of 20th EPS, the electricity demand due to Electric Vehicle (EV) charging is estimated to be 63,651 MU (about 2.35 percent of projected total demand) by FY 2031-32. Adequate generation capacity has been planned to meet the rising demand of electricity in the country including due to rise in Electrical Vehicles,” he stated.

India’s installed electricity generation capacity stood at 485 GW as of June 2025 and is projected to grow to about 870 GW by FY32, according to the National Electricity Plan (Generation) published in May 2023.

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Thermal, hydro, nuclear and RE capacity pipeline detailed

“To meet the projected thermal (coal and lignite) capacity requirement of approximately 3,07,000 MW by 2034–35, against the 2,11,855 MW installed as on March 31, 2023, the Ministry of Power has envisaged to set up an additional minimum 97,000 MW coal and lignite based thermal capacity,” the minister said.

As of June 2025, 11,680 MW of thermal capacity has already been commissioned since April 2023, while another 38,935 MW is under construction — including 5,695 MW from stressed thermal projects. Contracts for another 15,440 MW have been awarded in FY25. An additional 35,460 MW of coal and lignite-based capacity is currently at various stages of planning.

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Naik also provided updates on other capacity additions. A total of 13,463.5 MW of hydroelectric projects are currently under construction, and another 9,802 MW of hydro capacity is under various stages of planning and is targeted for completion by 2031-32. For nuclear power, 6,600 MW of capacity is under construction and targeted for completion by 2029-30, while an additional 7,000 MW is under various stages of planning and approval. In the renewable energy segment, 1,58,450 MW is under construction — including 74,150 MW of solar, 30,080 MW of wind, and 53,750 MW of hybrid power — while another 62,000 MW of renewable capacity, including 46,010 MW of solar and 15,990 MW of hybrid power, is at various stages of planning and is targeted to be completed by 2029-30. In energy storage, 8,250 MW/49,500 MWh of pumped storage projects (PSPs) are under construction. A further 5,780 MW/34,680 MWh of PSPs have been concurred but are yet to be taken up for construction. Out of these, 3,500 MW/21,000 MWh of PSPs are under bidding. Additionally, 15,829 MW/51,106 MWh of battery energy storage systems (BESS) are currently at various stages of construction or bidding.

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