INDIAN COMPANIES RETURNING TO COAL-FIRED POWER AFTER YEARS AWAY

India’s government aims to boost coal-fired capacity by 80 GW by 2032 to address energy security, despite renewables and hydro accounting for a significant portion of the country’s current installed capacity

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Private Indian firms, including Adani Power, JSW Group, and Essar Power, have expressed interest in constructing at least 10 gigawatts (GW) of coal-fired power capacity over a decade, sources familiar with the matter revealed. This marks the end of a six-year period characterized by limited private involvement in the sector.

These firms have communicated their intentions to India’s power ministry, expressing willingness to either expand existing plants or revive stalled projects facing financial challenges. The potential investments, not previously disclosed, could entail billions of dollars and indicate a renewed interest in an industry often viewed as financially unattractive.

Prime Minister Narendra Modi’s government has been actively seeking private investment to augment India’s coal-fired capacity by 80 GW by 2032, citing energy security concerns and relatively low per-capita emissions. Currently, coal-fired power plants account for approximately half of India’s total installed capacity of 430 GW, with renewables and hydro making up significant portions.