Coal Ministry Drives Major Expansion of CPSE Operations

26 Mar 2024 , 03:17 PM

In keeping with the nation's commitment to a diverse energy mix, the coal ministry stated on Tuesday that it is aggressively promoting significant diversification across central public sector organisations, including Coal India. Under its administrative jurisdiction are two sizable Central Public Sector Enterprises (CPSUs), namely Coal India Ltd (CIL) and NLC India Ltd (NLCIL).

'In line with India's commitment to diversifying its energy mix, the Ministry of Coal is actively promoting extensive diversification within CPSEs, establishing pit-head TPPs, solar power plants, coal/lignite gasification plants, and critical mineral exploration,' the coal ministry stated in a statement.

The ministry's decision, which emphasises the use of de-coaled land for economically viable pit-head thermal power plants, aims to ensure both PSUs have sustainable operations going forward, anticipating a surplus of coal.

While NLCIL is involved in lignite, power production, new renewable energy, and coal mining, CIL is a traditional coal business with seven arms.

It was considered that diversification was essential, particularly in light of the narrative surrounding climate change. This included expanding into non-coal industries, acquiring new ventures, and effectively using sizable reserves.

About 65% of the nation's fossil fuel consumption and 80% of the nation's domestic coal production come from CIL.

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