Coal India to invest Rs 67,000cr in new coal-fired power plants near mines

Coal India Limited is moving ahead with a substantial Rs 67,000 crore investment to develop coal-fired power plants near its mines. This strategy aims to reduce transport costs and enhance economic efficiency by locating the plants close to coal mines, especially in Odisha. With the Indian government planning to add 88 gigawatts of thermal capacity by 2032, the new plants are part of a broader initiative to address the nation’s surging energy needs and ensure energy security amid ongoing economic growth.

Major Investment to Meet Rising Energy Demand

Coal India Limited’s decision to invest heavily in coal-fired power plants comes amid growing demand for reliable electricity in India. By situating these plants near coal mines, the company seeks to minimize logistical expenses and maintain its competitive edge. Debasish Nanda, Director of Business Development at Coal India, noted that approvals for 4.7 gigawatts of capacity have already been secured for the next six to seven years, with another 2 gigawatts currently under discussion.

This investment is part of a larger plan announced by the Indian government to add 88 gigawatts of thermal power generation capacity by 2032. India’s energy policy continues to focus on coal as a primary energy source, given its significant reserves and the relatively low cost of coal-fired power compared to other energy sources.

Balancing Energy Security and Renewable Goals

While the heavy investment in coal-fired plants indicates India’s continued reliance on coal, it does not preclude a commitment to renewable energy. The country is also focusing on building renewable power capacity and has set ambitious goals for increasing solar and wind power. However, the government emphasizes that coal will remain a vital part of the energy mix due to its availability and cost-effectiveness in meeting the base load demand. Union Power Minister R K Singh highlighted that coal-based power capacity is essential to ensure 24×7 energy supply and shield the country from geopolitical disruptions.

Expert Views on the Future of India’s Energy Mix

Experts suggest that while renewable energy will play an increasing role in India’s energy strategy, the economic and logistical benefits of coal are hard to ignore. Anil Sardana, Managing Director of Adani Power and Chairman of the Confederation of Indian Industry’s National Committee on Power, stated that meeting India’s growing power demand will require a balanced mix of thermal and renewable power. Given the projected peak demand growth, India needs to ensure a stable and sustainable power supply that supports its economic expansion.

Coal India’s Rs 67,000 crore investment in coal-fired power plants underscores the complexities of India’s energy transition. While aiming to secure energy supply amid rapid growth, the country is also balancing this with its renewable energy commitments. The future energy landscape in India will likely involve a combination of coal and renewable sources, driven by both economic imperatives and environmental considerations.