Coal companies will set up new power plants near the mine, preparing for production at less than Rs 4 per unit

The way coal production is planned to be increased in the country, there is a possibility that public sector coal companies may have additional coal reserves after three to four years. In view of this situation, the Central Government has asked the subsidiaries of Coal India Limited to prepare for setting up thermal power plants near their pit heads (coal mines).
It is clear from this directive of the Coal Ministry that despite promoting renewable energy sources like solar, and wind, India will not stop setting up new thermal power plants. On Monday, the Ministry of Coal has given detailed information about this. The ministry says that setting up a power plant near a coal mine can generate electricity at a fixed cost of Rs 2.50 per unit and a variable cost of Rs 1.25 per unit.
Even in the coming four to five years, if the production cost of electricity in the country is kept at Rs 4 per unit, then it will be a very good cost considering the market. The distance from the mine increases the cost of electricity. Along with this, government coal companies like NLC India Limited (NLCIL) and Mahanadi Coal Fields will also be able to make better use of their additional coal production. Along with this, these companies have also been asked to construct thermal powerhouses in such a way that solar energy panels can also be installed there. This will help in reducing the cost of electricity further.
It has been told by the Ministry of Coal that all the companies like NLC India Limited (NLCIL), Coal India (CIL), and Mahanadi Coal Fields are also venturing into the thermal power plant business. This decision has been taken keeping in view the future of the coal sector.
These companies are joining forces with the state governments to set up thermal power plants. In this, the work of setting up a 1960 MW capacity plant at Ghatampur in Kanpur is going to start soon with NLCIL collaborating with the Uttar Pradesh state government. Out of this, 1478 MW of power will be given to Uttar Pradesh and the remaining power to the state of Assam.
It is also informed that NLCIL is also planning to set up a second plant of 2400 MW capacity in Odisha. This project will supply power to Tamil Nadu, Kerala, and Puducherry. The company will invest a total of Rs 38,828 crore on these two projects in Uttar Pradesh and Odisha.
CIL, the largest company in the coal sector, is going to set up a 660 MW plant in collaboration with the Madhya Pradesh government at a cost of Rs 5,600 crore. Mahanadi Coal Fields, a subsidiary of CIL, has planned to set up a plant of 1600 MW capacity.