On February 15, Coal India Limited (CIL) and the Haryana Power Purchase Centre (HPPC) inked a memorandum of understanding (MoU) in which the latter indicated an interest in buying 800 megawatts (MW) of electricity from “Mahanadi Basin Power Ltd” (MBPL), a wholly-owned subsidiary of Mahanadi Coalfields Limited (MCL).

According to the public sector unit, MCL is Coal India‘s largest coal-producing division operating in Odisha.

Section 62 of the Electricity Act of 2003 will apply to power acquisition, as per the provisions of the Memorandum of Understanding. This is the process by which the relevant commission establishes the power tariff for the delivery of electricity by a producing company to a distribution licensee in compliance with the act’s requirements.

India intends to continue increasing its capacity for producing coal beyond the declared goal of doubling it by 2030, putting its requirements ahead of the growing demand from across the world to reduce its reliance on fossil fuels.

The government will keep raising coal output even after 2030, according to Minister of Coal, Mines, and Parliamentary Affairs Pralhad Joshi, who spoke with Moneycontrol last month. This is because the country’s electricity consumption is expected to rise sharply in the upcoming years.

Compared to 698.99 MT during the same time in FY22-23, the coal output in the current fiscal grew by 12.18% to 784.11 MT (provisional) between April and January.

According to a Ministry of Coal announcement, the nation also had a 6.52% growth in coal shipment in January 2024, reaching 87.37 MT from 82.02 MT in the same month the previous year.

In a written response to the Rajya Sabha, Minister of Coal Pralhad Joshi stated, “The government’s focus is on increasing domestic coal production and eliminating non-essential coal imports into the country.” The majority of the nation’s coal needs are satisfied by domestic production and supply.

As of January 31, 2024, the coal businesses’ stock of coal increased by 47.85% to 70.37 MT. Up until January 31, 2024, thermal power plants (TPP), more especially domestic coal-based plants, experienced an annual growth of 15.26% to 36.16 MT.

From April to November of FY24, India purchased 169.08 MT of coal. Coal imports were 237.67 MT, 208.63 MT, and 215.25 MT in FY23, FY22, and FY21, respectively.

The minister also said that the government is determined to lower the exports of all coal that is of substitutable grade and has implemented several actions to increase domestic coal production.

In addition, compared to the same time in FY23, coal imports for blending decreased by 44.3% during the April–November period of the current fiscal year.