Companies

Coal India plans to invest ₹5,650 crore in solar power projects

Our Bureau Kolkata | Updated on November 23, 2020 Published on November 23, 2020

The solar power initiative helps CIL reduce its whopping annual power consumption expense   -  THE HINDU

To set up 14 solar power projects of 3,000 MW by FY-24

State-owned Coal India Ltd (CIL) plans to set up 14 rooftop and ground mounted solar power projects of 3,000 MW capacity by FY’24 at an estimated investment of around ₹5,650 crore.

CIL is mandated by the Ministry of Coal to become a net zero company. Solar power initiative is a part of the company’s diversification plans.

Of the total ₹5,650 crore, around ₹3,650 crore would be invested by CIL as a part of its capital expenditure till 2023-24, the rest would be met through joint venture models that the company intends to pursue for this initiative.

Also read: Covid singes solar power industry; Q3 capacity addition dips 80% year-on-year

“Additionally, the solar power initiative helps CIL reduce its whopping annual power consumption expense, which was around ₹3,400 crore ending FY’20, accounting for around 4.4 per cent of the revenue expense for the year. Any saving under the power bill would also bolster the bottom line of the company,” a press statement issued by the company said.

Beginning with a modest 10-MW solar capacity during the ongoing fiscal, CIL would gradually peak up to 1,340 MW in 2023-24. For FY’23, solar power capacity addition is targeted at 1,293 MW, with 220 MW capacity to come up in 2021-22.

Joint ventures

Coal Lignite Urja Vikas Private Ltd, the joint venture between CIL and NLC India Ltd, which was floated to develop 1,000-MW solar power projects, has come into being on November 10.

CIL has also tied up a joint venture with NTPC and an MoU with Solar Energy Corporation of India for solar projects of 1,000 MW each, the progress of which is being worked out individually.

Besides establishing solar projects, CIL is in discussions with NTPC for purchase of 140 MW solar power under the Central government’s CPSE Scheme.

CIL’s subsidiaries have already identified around 1,156 acres of land to set up around 220 MW solar projects by end FY’22. For 2022-23 and 2023-24, CIL is eyeing to set up solar projects on pan-India basis subject to power evacuation facility by Central transmission utility.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on November 23, 2020
This article is closed for comments.
Please Email the Editor