India to Double Thermal Coal Linkages
COAL & MINING

India to Double Thermal Coal Linkages

India's drive to harness its coal resources is expected to persist, with coal linkage to thermal power projects projected to increase from around 550 million tonnes to 1 billion tonnes. This is significant as India boasts the world's fourth-largest coal reserves and is the second-largest coal producer. The country's coal production is expected to reach 1 billion tonnes this year.

Coal linkages play a crucial role in supplying power plants, with the power sector being the largest consumer of domestic coal in the previous fiscal year, accounting for 84% of total dispatches.

The surge in coal linkages aligns with the government's plans to boost domestic coal production to 1.5 billion tonnes and increase the peak-rated capacity of coal mines to 2 billion tonnes, ensuring that coal production matches demand.

The power sector's peak demand is forecasted to reach 334.8 GW by 2030, well above the Central Electricity Authority's estimate of 230 GW.

While India is actively expanding its renewable energy capacity, coal remains a cornerstone of the power sector, contributing around 75% of the country's electricity generation.

The rise in coal linkage projections comes as India strives to meet its growing power demand while ensuring a consistent supply of coal to power plants. This initiative aims to prevent the near-crisis situations experienced in FY22 and FY23 due to power demand and coal supply mismatch.

Coal India has reported a 12% increase in production so far in the current fiscal year, with 394 million tonnes produced. The power sector has also seen a 4.5% increase in coal supplies to 346 million tonnes during the April-October period.

Despite efforts to boost domestic coal production, the Ministry of Power recently directed power generation companies (gencos) to blend 6% imported coal until March next year due to falling inventory at thermal plants.

As India seeks to increase its renewable energy capacity to 500 GW by 2030, coal is expected to remain a key element of the power sector, ensuring a elestable electricity supply while transitioning to cleaner energy sources.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

India's drive to harness its coal resources is expected to persist, with coal linkage to thermal power projects projected to increase from around 550 million tonnes to 1 billion tonnes. This is significant as India boasts the world's fourth-largest coal reserves and is the second-largest coal producer. The country's coal production is expected to reach 1 billion tonnes this year. Coal linkages play a crucial role in supplying power plants, with the power sector being the largest consumer of domestic coal in the previous fiscal year, accounting for 84% of total dispatches. The surge in coal linkages aligns with the government's plans to boost domestic coal production to 1.5 billion tonnes and increase the peak-rated capacity of coal mines to 2 billion tonnes, ensuring that coal production matches demand. The power sector's peak demand is forecasted to reach 334.8 GW by 2030, well above the Central Electricity Authority's estimate of 230 GW. While India is actively expanding its renewable energy capacity, coal remains a cornerstone of the power sector, contributing around 75% of the country's electricity generation. The rise in coal linkage projections comes as India strives to meet its growing power demand while ensuring a consistent supply of coal to power plants. This initiative aims to prevent the near-crisis situations experienced in FY22 and FY23 due to power demand and coal supply mismatch. Coal India has reported a 12% increase in production so far in the current fiscal year, with 394 million tonnes produced. The power sector has also seen a 4.5% increase in coal supplies to 346 million tonnes during the April-October period. Despite efforts to boost domestic coal production, the Ministry of Power recently directed power generation companies (gencos) to blend 6% imported coal until March next year due to falling inventory at thermal plants. As India seeks to increase its renewable energy capacity to 500 GW by 2030, coal is expected to remain a key element of the power sector, ensuring a elestable electricity supply while transitioning to cleaner energy sources.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?