Coal India (CIL) is diversifying into power generation, with a plan which includes a mix of both thermal and solar segments. The mining company intends to generate close to 400 MW of solar power in the current financial year. It will include 15 MW and 55 MW plants in areas under its subsidiary, Western Coalfields (WCL) as well.
CIL would be setting up thermal power plants in Madhya Pradesh and Odisha having a capacity of 660 MW and 1600 MW, respectively. The plant in Madhya Pradesh would be built over an existing facility, whereas the Odisha plant is planned to be a greenfield project.
Overall, the company plans to generate 3000 MW solar power, for which it will commence building ground-level solar panels in the areas in its possession. This would entail an investment of Rs 15,000 crore.
The power plant in Madhya Pradesh will come up at Amarkantak, and will be built jointly with the state government holding a 50 percent stake. However, the other facility in Sundargarh district of Odisha will be a completely CIL venture.
Once the plants are operationalized, CIL plans to sell electricity in the open market.
To maintain output, CIL will be undertaking a capital expenditure of Rs 16,500 crore, out of which Rs 1,000 crore would be incurred by WCL.
