Ministry of Coal drives ambitious net zero plan for Coal Sector

In a significant move aligned with the Prime Minister’s Panchamrit commitment, the Ministry of Coal has issued a directive to all its CPSEs (Coal Public Sector Enterprises) to diligently develop a net zero plan for the coal mining sector. Embracing the national commitment, Coal PSUs have meticulously crafted a three-year action plan, outlining specific targets for renewable energy.

Under this plan, Coal India Ltd (CIL) and its subsidiaries, along with NLCIL, have charted out a comprehensive roadmap to install substantial renewable energy capacities. CIL plans to establish 3000 MW of renewable energy capacity, while its subsidiaries and NLCIL aim to install 3,731 MW and 550 MW, respectively. This ambitious undertaking strives to achieve a total renewable energy capacity of over 7,281 MW by 2027.

Remarkably, significant progress has already been made in this pursuit. As of March 2023, approximately 1600 MW of renewable capacity has been created (CIL- 11 MW, NLCIL- 1360 MW, SCCL- 224 MW). For the current financial year 2023-24, an additional 1,769 MW has been awarded, with CIL accounting for 399 MW and NLCIL for 1370 MW. Looking ahead, an impressive 2,553 MW capacity (1110 MW of NLCIL + 1443 MW of CIL) is slated to be awarded in the following financial year, 2024-25.

To further bolster their green energy efforts, CIL and NLCIL are planning to establish large solar parks in Gujarat and Rajasthan. CIL has already taken its first step into the solar power domain by signing an agreement to sell 100 MW to GUVNL, Gujarat. Additionally, it has entered into a joint venture with RRVUNL for a 1190 MW solar park. NLCIL, on the other hand, has awarded the work for a 300 MW solar power plant to M/s Tata Power Limited, and the project is expected to be completed within 18 months, catering to Rajasthan’s power needs. Moreover, NLCIL has awarded a tender for another 300 MW solar park, with an additional 300 MW solar park likely to be set up in Gujarat through a green shoe option.

Both CIL and its subsidiaries are proactively establishing large-scale solar power plants on de-coaled land and overburden dumps. Additionally, they are equipping all houses in coal subsidiary companies with rooftop solar facilities. Notably, NCL has taken a step further by entering into a joint venture with the Government of UP to establish a 1500 MW floating solar power plant in Rihand reservoir.

The Ministry of Coal envisions a significant contribution to the country’s renewable energy requirements, aligning with its commitment to reduce carbon emissions and secure the future sustainability of coal companies. The coal subsidiaries have been directed to achieve net-zero emissions within the designated timeframe, leveraging their substantial internal resources to support this transition to sustainable practices.