Coal India Agrees To $970-Million Deal In Chase To Add India Solar
Coal India Ltd. agreed an 80 billion rupees ($970 million) deal to build 1.2 gigawatts of solar capacity in Rajasthan, as the world’s biggest miner of the fossil fuel aims to expand its tiny clean power fleet.
(Bloomberg) -- Coal India Ltd. agreed an 80 billion rupees ($970 million) deal to build 1.2 gigawatts of solar capacity in Rajasthan, as the world’s biggest miner of the fossil fuel aims to expand its tiny clean power fleet.
The Kolkata-based producer will invest in a power park in the state’s Bikaner district and aims to have the project -- its largest planned solar development -- underway in 24 months, according to a Friday stock exchange filing.
State-run Coal India is targeting 3 gigawatts of solar generation capacity by fiscal 2024 from a current base of about 300 megawatts under implementation as it aims to diversify into new areas and prepare for a longer-term decline in demand for fossil fuels. Prime Minister Narendra Modi’s government aims to build 500 gigawatts of clean power capacity by 2030, and to ultimately become a global hub for solar, energy storage and green hydrogen.
Read more: India Says on Track to Be a Solar and Green Hydrogen Powerhouse
Coal continues to account for about 70% of India’s electricity generation and remains the producer’s key short-term focus. More than 70% of the company’s record capital expenditure of 148.3 billion rupees in the year through March was deployed on coal mining and related transportation.
Supply shortfalls in recent months that have resulted from disruptions and a tight seaborne market have increased the pressure on Coal India to boost domestic production.
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