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India Plan 60% Increase In Coal Output By 2020

May 18, 2015

By Paul Homewood  




The Indian government are lining up a big expansion for coal production, as well as renewable energy. The Times of India reports:


NEW DELHI: Government today said investments worth $ 250 billion are planned over the next five years in coal, power and renewable energy and it is looking at opening 40-50 new coal mines in 18 months.

"The Power, Coal and Renewable energy sectors have plans to invest nearly USD 250 billion in the next five years…. In the coal sector we are looking at opening nearly 40-50 new mines in the next one and half year," Coal and Power Minister Piyush Goyal said at a seminar here.

Western Coalfields Ltd, an arm of Coal India Ltd, is alone looking at opening around 12 mines in the next 12 months, he said.

"On the transmission side, we are looking at nearly a hundred thousand crores worth of new lands being bid out in next six months… All of this will lead to massive investment in coal sector," Goyal said.

He also expressed optimism that a billion tonnes of coal production by Coal India Ltd by 2020 would be achieved.

On the conclusion of first round of imported gas subsidy auction, he said, "There were 14 technically qualified bidders and successful bidders are 7-8. Effective tariff is going to be in the region of 4.70 paise or 75 thereabout which is very competitive."

This process has enabled Ratnagiri Power, the Dabol power plant, to also bid successfully and possibly start supplying power, he added.

"The LNG facilities can now be used," Goyal said. He added that it is a "win-win situation for India" and a "big thumbs up" to Prime Minister Narendra Modi’s vision to provide 24×7 power to every part of the country.


As is the case with China, India need every bit of energy they can lay their hands on, if they want to improve their economy and people’s standards of living. They also know that intermittent, expensive renewables can only fill part of the gap, hence the plan to push forward on coal and gas.


To put the numbers into perspective, the billion tonnes of coal a year by 2020 compares with output of 613Mt in 2013.

  1. May 18, 2015 2:47 pm

    Thanks, Paul.
    “India need every bit of energy they can lay their hands on”, don’t we all?
    I don’t expect them to waste any coal by burning it incompletely.
    The green plants are celebrating this announcement.

  2. May 18, 2015 3:15 pm

    Doesn’t this increase in CO2 output in India, added to enormous increases of Chinese CO2 output at the same time, make any Western mitigating “Climate policy” an illusion?

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