India’s private coal power producers have urged the government to permit equipment imports from China, citing high domestic costs and limited local capacity, industry and government sources said. The request comes as India aims to expand its coal-fired generation in the coming decade.
The Association of Power Producers (APP), representing private coal-based developers, wrote to the Central Electricity Authority (CEA) on June 3 seeking an exemption from the “Make in India” mandate, a policy introduced by the Ministry of Power in 2021 that requires the use of domestic equipment. The programme was designed to boost local manufacturing and reduce dependence on imports amid heightened India-China tensions.
Although APP did not explicitly name China in its letter, sources said Chinese suppliers remain the only viable option. Imports from Beijing could slash project costs by nearly half—from the current ₹13–14 crore ($1.46–1.58 million) per megawatt to significantly lower levels, they added.
The CEA is examining the proposal, but neither the electricity authority nor the power ministry has publicly commented.
India plans to add 97 gigawatts (GW) of coal capacity by 2035. Currently, 48–50 GW of operational capacity uses Chinese equipment, largely from projects built before the 2021 restrictions.
“Domestic vendors are unable to commit to project completion timelines before 2030 at competitive prices,” APP said, noting that several local manufacturers have not developed new designs or capacities in the past decade.
Industry executives said easing restrictions could revive stalled projects, support expansions, and enable new greenfield developments. According to the power ministry, nearly 22 GW of private coal projects—about 10% of India’s coal-fired capacity—are stalled or at risk due to financial stress.
Cheaper equipment imports, they added, could lower costs and ease the pressure on private developers, strengthening India’s ability to meet its growing power demand.