Coal India Ltd. has announced plans to invest approximately 670 billion rupees (US$8 billion) to construct coal-fired power plants near its mines, with approval secured for 4.7GW of generation capacity to be built over the next six to seven years, primarily in Odisha. An additional 2GW is currently under discussion as part of a broader strategy to add 88GW of thermal generation capacity by 2032. This move comes as electricity demand in India is expected to surge, with coal continuing to play a crucial role in the energy mix, constituting around 75% of the country's power generation. Despite the push for increased coal production, Coal India also aims to develop renewable energy sources and critical minerals, aligning with India's target of achieving net-zero emissions by 2070. However, environmentalists have criticized the government for insufficient decarbonization efforts, raising concerns about the environmental impact of continued reliance on coal.
In related developments, Coal India has successfully reversed a 14-year decline in underground coal production, reporting an output of 26.021 million tonnes for FY24, which marks a year-on-year growth of 2.10%. The company has deployed six continuous miners and commissioned three highwall miners to enhance underground mechanization. Additionally, Coal India has revisited abandoned underground mines, awarding 11 of them to private-sector bidders under a revenue-sharing model. These awarded mines have a cumulative peak rated capacity of 17.86 million tonnes per year and total extractable reserves estimated at 267.54 million tonnes. Coal India has awarded 24 out of 34 identified mines and is actively seeking to attract broader participation in the sector.
This combination of increased investment in coal-fired power plants and the revival of underground coal production reflects Coal India's strategy to meet rising energy demands while navigating the complexities of environmental sustainability and market dynamics. As India continues to grapple with its energy needs, the balance between coal reliance and renewable energy development remains a critical focus for policymakers and industry leaders alike.
[b9bf464e] [bb9cd365] [cd8297b3] [2a40d915]