India to add 97 GW coal and lignite power capacity by FY35
Author: PPD Team Date: August 21, 2025
The Power Ministry has raised its thermal expansion target to 97 GW of new coal and lignite capacity by FY35, up from 90 GW planned for FY32.
Minister of State for Power Shripad Naik told the Rajya Sabha that India will require around 307 GW of coal and lignite capacity by FY35, with 2 GW set to retire by FY32. The earlier estimate for FY32 was 283 GW.
Between April 2023 and June 2025, 11.68 GW have been commissioned. Another 38.94 GW is under construction, 15.44 GW awarded, and 35.46 GW identified at the planning stage.
The National Electricity Plan projects total installed capacity to reach 874 GW by FY32. Transmission additions planned for FY23–FY32 include 1,91,474 circuit km of lines and 1,274 GVA of transformation capacity.
Naik said states have prepared 10-year rolling Resource Adequacy Plans with the Central Electricity Authority. The CEA has advised utilities not to retire coal plants before 2030, instead extending their life through renovation and modernisation.