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Coal India to spend $8 billion on coal-fired plants near mines

Bloomberg News | September 10, 2024

Coal India Ltd. is planning to invest about 670 billion rupees ($8 billion) to build coal-fired power plants close to its mines, signaling the fast-growing economy will remain reliant on the fossil fuel for decades to come.


The state-owned miner has already won approval for 4.7 gigawatts of generation to be built over the next six to seven years, with most of the facilities to be in the state of Odisha on India’s east coast, Business Development Director Debasish Nanda said in an interview. Another 2 gigawatts are currently under discussion and may take longer to complete, he said.

The new power stations are in addition to a plan, announced by New Delhi late last year, to add 88 gigawatts of thermal generation capacity through 2032. The world’s most populous country is forecasting electricity demand to surge over the next few years, making it tough to wean itself off coal, which accounts for around three-quarters of the power mix.

The fossil fuel will remain relevant to the country’s electricity mix for at least three decades, Nanda said. Putting these plants near mines will allow the company to avoid transport costs, keeping them competitive, he said, adding that Coal India is also looking to build renewable power stations and get into mining critical minerals.

India has a goal of getting to net zero by 2070, later than other major economies, reflecting the fact that both its population and economy are still growing quickly. However, environmentalists say the government should be doing more to decarbonize the power system.

“Coal is already unsustainable on the four key parameters of climate, environment, social justice and economics,” said Sunil Dahiya, a New Delhi-based analyst at the Centre for Research on Energy and Clean Air. “The government needs to form policies that allow wise use of resources, instead of burdening the power system and the economy with expensive coal-fired electricity.”

India Looks to Boost Coal Output and Cut Imports

By Charles Kennedy - Jun 13, 2024

he world’s second-largest coal consumer, India, plans to increase its domestic coal production and reduce imports, G. Kishan Reddy, Minister of Coal and Mines, said on Thursday.

Reddy, however, did not provide details about volumes, Indian media report.
Earlier this year, Rajat Handa, vice president of international trade at Agarwal Coal, told Reuters that India’s coal imports “are not going to be higher than 160 million tons” in 2024.

Many coal users that previously imported coal have started to switch to domestic supply, Handa said.

As a result, Indian coal industry officials expect the country’s imports of thermal coal – the one used for power generation – to drop in 2024 for the first time since the start of COVID, due to rising domestic coal production and record-high levels of inventories.

In the 2023-2024 fiscal year ended March 2024, India’s total coal production rose by 11.65% to 997.25 million tons, according to data from the Ministry of Coal. So far into the 2024/2025 fiscal year, Indian coal production increased by 8.82% in April and May 2024 compared to the same period of 2023/2024, the data showed.

Amid a heatwave and reduced hydropower generation, India boosted its coal consumption to a record high in the first quarter of this year, which also drove up emissions from the power sector to an all-time high.
More coal-fired units were fired up at the start of the year in the country, amid a prolonged heatwave with above-normal temperatures which pushed electricity consumption higher. Power demand continued to rise with the expanding economic growth, too.

Utilities in India have also tried to limit the possibility of power outages ahead of the general election which was held between the middle of April and early June.

India raised the share of coal in its power generation in April as sharply lower hydropower output has threatened blackouts as summer approaches.

Coal India to bid for 3 mines in critical minerals auctions this month

Reuters | February 19, 2024

State-run Coal India will bid for three blocks in critical minerals auctions conducted by the country’s mines ministry in February, chairman and managing director P M Prasad told analysts in a post-earnings conference call on Monday.

The Kolkata-based Coal India is optimistic about reaching its production target of 780 million metric tons in the current fiscal year, Prasad said, but added that land- and environment clearance-related challenges at its South Eastern Coalfields unit could bring a shortfall of 8-9 million tonnes.

Coal India’s stockpiles and inventories held by power plants are currently at record highs, resulting in the miner lowering its annual production target for fiscal 2025 by 1.4% to 838 million tonnes.

Coal India to open new mines and expand existing ones as demand soars
The announcement comes as India looks to boost coal-fired power capacity amid continued high demand.

Annabel Cossins-Smith February 15, 2024

Indian state-run company Coal India will begin operations at five new coal mines and expand the capacity of at least 16 existing mines to help meet growing demand for the fossil fuel, the company’s chairman, P.M. Prasad, told reporters on Wednesday.

Anticipated record output from the company is set to boost coal inventories at power plants across the country by 16.1% year-on-year, hitting 40 million tonnes (mt) by the end of March, Prasad told Reuters.

The miner plans to start operations at five new mines, which will have a combined annual capacity of 14.3mt, in the next fiscal year, Prasad said.

The company stands as the world’s biggest coal miner and saw profits and share prices surge over the past year. It is finally on track to exceed production targets for the second year running, Prasad said, after falling short of output goals for 16 straight years.

Coal India is aiming to boost output by more than 7% for the coming fiscal year starting 1 April, hoping to end on a record 838mt. It holds initial stockpiles of 80mt, up more than 15% from the same period last year.

The miner has already awarded nine projects with a combined annual capacity of 83mt to private companies, with another two projects capable of producing 32mt expected to be awarded before the end of next month, Prasad said.

India’s plans to double coal production ignore climate threat

Bloomberg News | January 9, 2024

As climate diplomats at COP28 in Dubai debated an agreement to transition away from fossil fuels last December, India was facing another energy conundrum: It needed to build more power capacity, fast.


“To meet growing demand,” the Indian government said on Dec. 11 it expects to roughly double coal production, reaching 1.5 billion tons by 2030. Later, the power minister Raj Kumar Singh set out plans on Dec. 22 to add 88 gigawatts of thermal power plants by 2032. The vast majority of which will burn coal.

The move to invest more in the world’s dirtiest fuel – one of the biggest contributors to global warming – may seem counterintuitive for the South Asian country, which is highly vulnerable to climate impacts. Yet, as the country heads into elections during April and May, Prime Minister Narendra Modi is keen to avoid any risks of power shortages. Along with record heat waves India has seen big spikes in peak demand for electricity over two successive years.

“India’s policy is to build everything. Push for renewables, but also push for coal and other fossil fuels,” said Sandeep Pai, director of the climate-focused organization Swaniti Global. “The justification is an increase in power demand.”

When it comes to renewable energy, however, India is failing to build enough to meet its ambitious goal of 500 gigawatts of clean-energy capacity by 2030. The rates at which solar and wind power was installed over the past few years is about a third of what’s needed, according to BloombergNEF.

There is a combination of factors affecting the renewables roll out. The top reasons, says Rohit Gadre of BNEF, are the misaligned incentives of state-owned electricity retailers, difficulty of acquiring the land necessary and lack of consistent policies at federal and state levels. As a result, even as the demand for power is rising, there’s not enough appetite among private investors to speed up renewable investments.

That is not to say things will be smooth for coal either, which is facing similar challenges in attracting new investment. “Solar and wind power plants can be built quickly, whereas coal power plants will take much longer and at higher costs,” said Vibhuti Garg, South Asia director for the non-profit Institute for Energy Economics and Financial Analysis.

Neither Pai nor Gadre expect India to reach the coal targets it has set. BNEF’s economic-transition scenario sees India’s coal use topping out at 1.1 billion tons before 2040.



Ultimately, India needs investment in its energy infrastructure as the lower middle-income country seeks economic growth. Per capita electricity consumption for India is far below those of developed countries or even China. And India is still far from using up its fair-share of the global carbon budget.

India, as well as other big developing countries, also need more incentives to choose a greener path. Over the last three years, the Group of Seven nations have designed the Just Energy Transition Partnership to help South Africa, Vietnam and Indonesia to reduce coal use. Those deals have been messy and yet to show results.



While the world may have agreed to transition away from fossil fuels at COP28, it hasn’t found effective ways to help countries like India replace coal, environment minister Bhupendra Yadav suggested this week at a launch for the book titled Modi Energising A Green Future. That doesn’t have to be simply about rich countries handing out cash, he said at the event, but better policies, technology transfer and skills training are also needed.

Pai echoed this view. “The world needs to offer something to India to not carbonize,” he said. “The main challenge is the world really doesn’t offer much to India or to any developing country.”

India’s Government to put 26 coal mines up for auction
The auction will see 26 mines from four states offered out.

Annabel Cossins-Smith December 21, 2023

India’s Government launched its 9th round of commercial auctions for its coal mines on Wednesday, as the country looks to boost domestic production of the fossil fuel to meet increasing energy demand.

The auction will see 26 mines from four states offered out; 12 in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand and one in the southern state of Telangana.

Seven of the 26 mines have already been fully explored, with the remaining 19 partially explored, the Ministry of Coal said in a press statement on Monday. The majority of the mines on offer produce non-coking coal.

The aim of the commercial auction is to “enhance the participation of more private players in the coal sector, fostering competition, efficiency, innovation and contributing to sustainable development,” the ministry said.

This year, India has worked towards boosting domestic production of coal, which remains the country’s primary energy source, although its stance on the fossil fuel has become complicated as it tries to balance meeting increased demand with calls for a complete phase-out of coal by international bodies.

A report from energy watchdog Global Energy Monitor, published in April, warned that global coal power must be phased out five-times faster if climate goals are to be maintained.
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India’s Coal Ministry completes 7th Tranche of Coal Block Auctions Successfully

By NS Energy Staff Writer 07 Aug 2023

The successful completion of these auctions reinforces the Government's commitment to fostering growth and sustainability in the coal mining industry, driving India's economic progress and ensuring energy security.

The Ministry of Coal has successfully completed the auction of coal mines for Commercial Mining under 7th round and second attempt of 6th round.

After assessment of bids, the forward e-auctions for six mines had commenced from August 1, 2023 culminating in the successful auction of all six mines on 3rd August, 2023.

The details of the coal mines auctioned are as under: –

Among the mines auctioned, two coal mines are fully explored while four are partially explored.
The total geological reserve for these six coal mines is at 2,105.74 Million Tonnes.
The cumulative Peak Rated Capacity (PRC) for these coal mines is 7 MTPA, (excluding the partially explored coal mines.)

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"Comme l'enfer": des mines de charbon indiennes en feu depuis un siècle

AFP VIDEO•19/07/2023

Des incendies souterrains font rage depuis un siècle dans les mines de charbon de l'État indien du Jharkhand, où quelque 100.000 mineurs illégaux ramassent ce combustible très utilisé en Inde.

"Comme l'enfer": des mines de charbon indiennes en feu depuis un siècle

AFP le 14 juill. 2023

Des incendies font rage depuis un siècle dans les mines de charbon de l'État indien du Jharkhand, où la jeune Savitri Mahto, risque sa vie, comme 100.000 autres personnes, à ramasser du charbon.

"Les incendies ont carbonisé la terre", déclare à l'AFP la jeune femme de 22 ans qui collecte illégalement du charbon au milieu des flammes, aux abords d'une vaste mine commerciale à ciel ouvert.

"Nous vivons dans la peur tous les jours", ajoute-t-elle.

Les incendies souterrains, provoqués selon les scientifiques par un accident minier survenu en 1916, creusent des gouffres dans le sol qui s'effondrent et engloutissent tout, les gens comme les habitations.

"C'est dangereux de vivre ici", confie Savitri Mahto, qui rêve de devenir infirmière, "les maisons peuvent s'affaisser à tout moment".

Les gens qui ramassent le combustible fossile et des activistes rapportent que des centaines de personnes sont mortes au cours des décennies.

"De nombreux accidents se sont déjà produits et continuent de se produire car le sol s'effondre", explique-t-elle à l'AFP, affairée autour d'un tas de houille qui produit du coke, combustible compact utilisé notamment pour cuisiner et pour alimenter les fours à briques.

Le vendeur de légumes Arjun Kumar, 32 ans, qui a perdu sa maison dans un effondrement, redoute que sa "vie devienne un enfer" s'il n'est pas relogé, et soit "contraint de vivre dans la rue comme un mendiant".

La consommation de charbon en Inde, pays le plus peuplé du monde et cinquième puissance économique mondiale, a doublé au cours de la dernière décennie, alimentant près de 70% du réseau électrique du pays.

La moitié des émissions de gaz à effet de serre en Inde provient de la combustion du charbon. Seule la Chine en consomme davantage.

Selon les experts, les poches d'incendies qui se produisent dans les mines à ciel ouvert, réparties sur près de 300 km2, calcinent des millions de tonnes de charbon produisant d'énormes quantités de CO2.

D'épaisses fumées grises flottent au-dessus des feux et enveloppent ces terrains ténébreux et chaotiques composant des scènes à l'atmosphère d'apocalypse.

- En vivre et en mourir -

"Nous avons une responsabilité envers la société en matière d'environnement", reconnaît Samiran Dutta, directeur de l'exploitant commercial des mines, Bharat Coking Coal Ltd (BCCL), filiale de l'entreprise publique Coal India.

Selon M. Dutta, BCCL ne saurait répondre de la sécurité des personnes qui pénètrent illégalement dans les mines. En revanche, il souligne que l'entreprise "se procurait divers gadgets", tels que des brumisateurs, dans l'espoir de réduire la pollution de l'air.

Mais les efforts déployés pour venir à bout des incendies, en recourant notamment à de l'azote liquide et en creusant des coupe-feux, demeurent vains.

Savitri Mahto ajuste le foulard pour couvrir son visage noir de suie. "L'air est très pollué", dit-elle, évoquant les gaz toxiques qui lui brûlent les yeux et les poumons.

Les mineurs travaillent dans des conditions épouvantables, mais "le charbon est vital au Jharkhand", fait valoir A. K. Jha, un dirigeant syndical local, estimant que les mines pourraient encore produire du charbon 200 ans durant pour l'industrie sidérurgique. Selon lui, "la charbon n'aura jamais de fin".

La demande en électricité continue d'augmenter en Inde, troisième émetteur mondial de gaz à effet de serre, derrière la Chine et les États-Unis, avec une classe moyenne en pleine expansion qui a besoin de s'équiper notamment en climatiseurs et réfrigérateurs.

À ce jour, le réchauffement d'à peine un degré celsius a rendu les conditions météorologiques extrêmes plus destructrices et meurtrières.

L'Inde, avec 1,4 milliard d'habitants, souligne que ses émissions par habitant sont inférieures à la moyenne mondiale mais elle s'est néanmoins engagée à réduire à zéro ses émissions de carbone d'ici à 2070.

Les autorités de l'État ont commencé à évacuer les habitants des mines en 2008, mais nombre d'entre eux s'estiment privés de leurs moyens de subsistance.

Sushila Devi, dont la fille de 15 ans a perdu la vie dans un effondrement il y a quatre ans en ramassant du charbon, déclare n'avoir d'autre choix que de rester.

"J'ai toujours peur de subir le même sort, mais je suis démunie", admet cette femme qui ne gagne que six dollars par jour, "si je ne travaille pas, qu'est-ce que je mangerai ?"

Selon M. Jha, en l'absence d'autres options, les ponctions illégales de charbon se poursuivront.

"La question clé est celle des moyens de subsistance", dit M. Jha, "si le gouvernement n'est pas en mesure (de fournir des emplois), les gens devront se contenter de ce que la nature leur donne".

India’s Ministry of Coal receives 35 bids in coal mine auction
The online and offline bids received came from both public and private entities as the government encourages an increase in coal mining.

By Alex Donaldson June 28, 2023

The Indian Ministry of Coal has announced that 22 companies have submitted 35 bids to run coal mines as part of a round of coal mine auctions in the country.

The ministry has put 103 coal and lignite projects up for sale under the seventh round of coal mine auctions. The round of bidding opened on 29 March 2022 and closed on 27 June. It included both online and offline documents.

The aim of the auction is to encourage the private sector to participate in the coal industry to improve production and meet coal targets. Earlier in June, Additional Secretary at the Ministry of Coal Shri M Nagaraju said that, “by 2035 to 2040, India’s coal requirement could go up to two billion tonnes”. Nagaraju added that the “introduction of new technology” and “attracting private sector [investment]” will be key factors in securing this. Alongside 17 private entities, five public sector companies submitted bids, including coal miner NLC India and NTPC Mining, a subdivision of India’s largest public sector energy conglomerate, NTPC.

This week, in order to expedite the purchase and operation of coal mines, the Ministry of Coal held a consultation on the funding structure of commercial coal mines. One major point of discussion was the barriers to financial assistance faced by prospective miners. A statement from the Ministry of Coal said that in the consultation, “the banks expressed their willingness to and assured flexibility to finance coal mines subject to demonstration of, among other things, project viability, equity infusion visibility etcetera in presence of detailed business plan”.

In March, India’s coal minister stated that the country will have enough coal reserves by 2026 to begin exporting the fossil fuel. This prediction is supported by the 47% increase in coal production the country has experienced over the past nine years, growth that will be boosted still further by the current coal mine auctions.

India achieves 55% growth in coal production in 9 yrs: Pralhad Joshi

JUN 08 2023
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the production increased to 893 MT in 2022-23 and the target is to produce over 1 billion tonne coal in 2023-24

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Plan for one of world’s biggest coal mines challenged in India
Coal India Ltd. is holding talks with residents opposed to a mine expansion that would create one of the world’s largest operations producing the fuel.

Bloomberg News | June 9, 2023

Protests against plans for the Gevra site in the eastern province of Chhattisgarh threaten to complicate the company’s ability to win approvals to expand annual capacity to 70 million tons. Output at that volume would see the site become the single biggest global source of the fossil fuel, according to Coal India.


Rising power demand has pushed India to prioritize energy security and boost output of coal, which continues to account for about 70% of electricity generation.

Residents of the area close to Gevra have raised concerns over air pollution, the impact on ground water levels and compensation for acquired land, said Deepak Sahu, joint secretary for Korba district — where the mine is located — at Chhattisgarh Kisan Sabha, a farmers’ union in the state.

Coal India and its subsidiaries have faced challenges in ramping up other operations, including in Chhattisgarh, and a public hearing was held this week at the Gevra site.

“The company has taken considerable measures to address the issue of pollution associated with the mining process,” and studies have shown there’s no impact on ground water levels in the Korba district, a spokesman at South Eastern Coalfields Ltd., the unit that operates Gevra, said by phone.

The Coal India unit gave 700 jobs in lieu of land last year, the most in a decade, and has increased financial compensation for land, he said.

Global Coal Market Receives A Boost From India

By Cyril Widdershoven - Sep 13, 2022,

> CEA: India’s energy sector will be needing an additional 28GW coal-fired power generation capacity by 2032.
> These additions will be needed on top of the 25GW in thermal coal projects currently under construction.
> Until now, the Indian Ministry of Coal has successfully auctioned 43 coal mines with a peak rate capacity of 85.54 mtpa.

India’s energy sector will be needing an additional 28GW coal-fired power generation capacity by 2032, advisory body Central Electricity Authority (CEA) stated.

These additions will be needed on top of the 25GW in thermal coal projects currently under construction. In its ‘Draft National Electricity Plan (Vol-1 Generation) CEA gives these recommendations for ‘feedback’ to stakeholders. CEA is publishing a National Electricity Plan every five years, putting it in front of licensees, generation companies, and the general public. The institution also stated that the BESS (Battery Energy Storage System) requirement in 2031-32 is varying from 51GW to 84GW. In a warning to the industry, the CEA indicated that in case of a delay in the construction of hydro-plants, there will be another 4GW of coal-fired power generation needed in 2026-2027. India’s energy industry is also looking at base load nuclear capacity, but in the meantime, cheap coal serves as an alternative. The CEA report further indicated that India’s peak electricity demand is set to be hitting 272GW, while electrical energy requirements are set at 1,874BU in 2026-2027, while for 2031-32 363GW and 2,538BU is needed.

To increase local coal production, the Indian Ministry of Coal is holding an e-auction for 10 commercial mines, as the technical evaluation of bids is completed. The peak rate capacity of these mines being put up for e-auction is 39.31 mtpa. An e-auction for 8 coal mines is done on September 13, while the remaining 2 are being held on September 14. Until now, the Indian Ministry of Coal has successfully auctioned 43 coal mines with a peak rate capacity of 85.54 mtpa. In statements last month, Indian coal minister Pralhad Joshi stated that around 107 coal blocks will be put up for auction in the future. India’s overall coal production increased by 8.27% (Y-o-Y) to 58.33 million tons in August 2022 compared to 53.88 mt in August 2021. By 2030, India’s coal demand is set to hit 1.5 billion tons.
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Coal India to commission Siarmal mine to address power crisis
Expected to become one of the biggest of its kind in India, the Siarmal mine will produce 50Mtpa of coal.

May 25, 2022

State-run Coal India (CIL) plans to open the Siarmal coal mine in Odisha to help address the power crisis in the country, reported Reuters.

The mine is expected to become one of the biggest of its kind in India.

CIL unit Mahanadi Coalfields (MCL) spokesman Vinayak Jamwal was cited by the news agency as saying that the mine is expected to reach a production capacity of 50 million tonnes (Mtpa) in approximately five to seven years.

Jamwal said that infrastructure work was underway for the Siarmal open cast mine, which is being built in a partly forested area.

Furthermore, Coal India is planning to sell a 25% stake each in wholly owned subsidiaries Bharat Coking Coal (BCCL) and consultancy arm Central Mine Planning & Design Institute (CMPDI), reported Financial Express, citing company sources.
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In the financial year to March 2023, CIL looks to open two additional mines that would have a combined annual capacity of 7Mt, according to officials.

Coal India accounts for 80% of the country’s domestic coal production. The firm intends to produce 700Mt of coal this year and increase its capacity to one billion tonnes by 2025.