Centre may target 100 GW coal power as demand soars

The Centre plans to add 100 GW of coal-fuelled power in the next seven years, raising its previous target of 80 GW given India's soaring electricity demand and rising coal production, two people aware of the matter said.

- Rituraj Baruah

The Centre plans to add 100 GW of coal-fuelled power in the next seven years, raising its previous target of 80 GW given India's soaring electricity demand and rising coal production, two people aware of the matter said. The additional capacity plan will entail an extra investment of ₹1 trillion, since every 1 MW of power costs ₹5 crore on average.

Despite the boom in solar and wind power, electricity from thermal and hydro projects remains critical. Every power grid must have a minimum, constant level of power demand called base load, which is typically supplied by coal and hydro projects given their stable output.

"Now, the government is looking at the possibility of adding over 100 GW of thermal capacity. The roadmap is still under consideration. But the vision is to use the vast reserves of domestic coal for power generation and ensure economic growth and adequate base load capacity," one of the two people cited above said on the condition of anonymity.