State-run Coal India to import coal to supply states & private firms

31 May 2022 CW Team

The federal power ministry announced that the state-run Coal India would import coal for utilities run by state governments and private companies.

India is likely to face a wider coal shortage during the quarter ending September as higher power demand worsens the risk of widespread power outages.

According to media sources, Coal India Ltd (CIL) will open one of the country's largest coal mines.

Vinayak Jamwal, a spokesman for Mahanadi Coalfields (MCL), told the media that the output from the new Siarmal mine in eastern Odisha would gradually expand, reaching a capacity of 50 million tonnes (MT) in five to seven years.

He revealed that the production would begin in the third quarter (Q3) of 2022, at a pace of 2 million to 5 MT per year.

Although India has declared that it plans to construct 450 gigawatts (GW) of renewable energy by 2030, it has not specified how the push for more coal would influence the country's emissions goals.

India presently has a total power generation capacity of 401 GW, with 111.4 GW upcoming from renewable energy.

CIL announced that its board of directors had authorised the sale of a 25% share in BCCL and the company's subsequent listing on stock markets. On March 10th, the board of directors made the decision.

The Coal India Board has recently given preliminary permission to the project. Only after gaining official clearance will further action be done.

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Also read: CIL to sell 25% stake each in its unlisted arms BCCL and CMPDI

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