Coal India Plans ₹67,000 Crore Investment in New Coal Power Plants

12 Sep 2024 , 01:07 PM

Coal India Ltd. plans to invest approximately ₹67,000 Crore ($8 billion) to establish coal-fired power plants near its mining sites. This investment reflects India’s ongoing dependence on coal as the economy expands rapidly, signaling a continued reliance on fossil fuels.

Coal India has received approval for 4.7 gigawatts of power generation capacity, to be developed over the next six to seven years, primarily in Odisha, on India’s east coast.

An additional 2 gigawatts are under consideration, but may take more time to complete. This initiative complements the Indian government’s earlier plan to add 88 gigawatts of thermal power capacity by 2032.

With electricity demand expected to rise significantly, coal will continue to play a crucial role in India’s energy mix, contributing to around 75% of the power supply. The new power plants, located close to coal mines, will minimize transportation costs, ensuring cost-effectiveness.

Coal India is also exploring opportunities in renewable energy and critical minerals mining. India aims for net-zero emissions by 2070, later than other major economies, due to its rapid population and economic growth.

Environmentalists argue for more aggressive decarbonization measures, criticizing coal for being unsustainable in terms of climate, environmental impact, social justice, and economics.

Sunil Dahiya from the Centre for Research on Energy and Clean Air emphasizes the need for policies that promote resource efficiency and reduce reliance on costly coal-fired electricity.