OPEN APP
Home / News / India /  Coal India to import coal for supply to states: Report
Listen to this article

State-run Coal India will import coal for utilities run by state governments and private companies, according to a federal power ministry letter reviewed by Reuters. India is expected to face a wider coal shortage during the quarter ending September as higher power demand worsens the risk of widespread power outages.

Also Read: Coal India’s fortunes are tied to price hikes

Coal India will open what is expected to be one of the country's largest coal mines, Reuters earlier reported citing officials. According to Vinayak Jamwal, a spokesman for Coal India unit Mahanadi Coalfields (MCL), output from the new Siarmal mine in eastern Odisha state will steadily increase, reaching a capacity of 50 million tonnes in around five to seven years.

Jamwal said production would begin in the October to December quarter at a rate of 2 million to 5 million tonnes per year.

India has not revealed how the push for additional coal will affect the country's emissions ambitions although it has stated that it aims to install 450 gigawatts (GW) of renewable energy by 2030.

India now has a total electricity producing capacity of 401 GW, with renewable energy accounting for 111.4 GW.

Coal India Ltd (CIL) announced on May 26 that its board of directors had approved the sale of a 25% stake in BCCL and the subsequent listing of the company on stock exchanges. The decision was made at a board meeting on March 10th.

"As advised by MoC, CIL Board in its 438th meeting held on 10th March.'2022 had accorded its 'in-principle' approval to divest 25% of paid-up share capital of BCCL held by CIL and its subsequent listing on stock exchanges and advised to forward the proposal to Ministry of Coal for obtaining further clearances," the company said in a filing.

The project had just received preliminary approval from the Coal India Board. Further action would be taken only after receiving official approval.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout