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Investments in coal mines across Talabira and more by Adani Group, Vedanta steering India’s growth

Currently, India has around 40 coal-fired power plant projects under construction including a combined investment of a whopping USD 40.2 billion accounting for 61 GW of capacity. Fuelling the initiative of self-reliant India, numerous private players are managing coal mines across states like Chhattisgarh, Odisha and regions like Raigarh, Talabira. Adani, Vedanta to name a few.

Recent policy changes in the mining sector are viewed as a major inflexion point by analysts bullish about the Indian growth story. Recently, the government introduced a bill in RajyaSabha for amending the Mines and Mineral (Development and Regulation) Act, which will allow private players with enhanced technology to participate in mining activities and also generate employment opportunities. Several leading private players have already started their operations across the coal mines in regions like Batsara, Kathautia, Radhikapur and Talabira. Adani Group, Hindalco Industries and Vedanta, to name a few.

The Union Minister for Coal and Mines, Pralhad Joshi said, “We want to bring private players into this because we have rich minerals like coal, gold, silver, but we are not being able to bring it out. That's why we are bringing these changes and trying to redefine exploration.”

According to the latest report by Fitch Solutions, coal-fired power plants will be steering infrastructure investment in the country’s power sector in the upcoming decade. Presently, there are 40 coal-fired power plants in India which are under construction and involve more than USD 40 billion of combined investment for 61 GW of capacity.

Additionally, the country is planning around 73 coal-fired power plant projects that are expected to involve a whopping investment worth more than USD 80 billion which will add up to 124 GW of capacity.

Fitch also highlighted the Indian Prime Minister’s proposal to waive carbon taxes on coal for reducing the debt levels in the coal sector. The company affirmed that in India the electricity generated from coal-fired power will increase to 1,691 TWh in 2030. It will be the largest expansion of coal-fired power generation across the globe.

Thermal power capacity is also assumed to witness a net growth of 116.7 GW over the same time span, and will be increased to 350.9 GW in 2030 from 234.2 GW in 2020. Among a number of coal power projects under construction, Fitch Solutions laid emphasis on the USD 3.1 billion Yadadri Thermal Power Project in Telangana and USD 3.6 billion KSK Mahanadi Power Project in Chhattisgarh. Both, the market and private players, are getting benefited from coal projects. Previously, after winning the bid for coal block of AdaniTalabira, Adani Enterprises went up by 3%. Also, the shares of Hindalco Industries and Vedanta rose by 4.24% and 0.42% after winning the bid for coal mines in Odisha and Jharkhand.

Over the decades, the coal industry has evolved significantly. With the recent reforms, the government is preparing a robust framework to enhance productivity and reduce the environmental impact along with a major focus on ensuring sustainability in the mining operations.

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