The Coal Ministry is embarking on a significant initiative to reduce the nation’s dependence on costly coal transportation for power generation. Plans are afoot to construct large-scale power plants near coalfields in Chhattisgarh, Odisha, and Jharkhand, each boasting a capacity of 5,000 megawatts, totaling 30 gigawatts.
These plants will be established through joint ventures involving government entities, private power firms, and state-owned electricity generators. State-owned coal companies will hold equity in these ventures, receiving land, coal, or funding support from the Coal Ministry in return. The project is set to commence post-general elections, with land acquisition efforts already underway near coal mines. By replicating successful models like that of Shaktinagar’s coalfield region, the government aims to emulate its significant coal production and electricity generation contributions.
The government’s urgency to initiate these power projects stems from the inherent cost advantage of transporting electricity over coal. While coal production costs approximately INR 2,000/t, additional expenses related to transportation more than double the landed cost of coal at power plants, reaching INR 4,300-4,600/t.
Addressing this cost inefficiency is a primary driver behind the government’s strategic plan. Additionally, with India’s burgeoning energy demands necessitating an increase in power capacity, the National Electricity Plan forecasts a requirement of 900,422 MW by 2031-32, encompassing various energy sources including coal-based capacity.
Furthermore, the Central Electricity Authority has outlined plans to boost coal-based capacity to 283,000 MW by FY 2032, up from the current 214,000 MW. This underscores the imperative for efficient power generation, aligning with the government’s vision for sustainable economic growth.