According to Reuters, the Coal Company of India (CIL) announced that it will invest 56.5 billion rupees (approximately US$763 million) to develop 14 solar projects by March 2024 to power its mining business.
According to the report, the state-owned company will fund nearly two-thirds of the total production capacity of 3GW rooftop and ground-mounted solar projects. The company will establish a joint venture with NLC India and provide funding for the rest of its solar expansion plans.
The company plans to cut its energy costs, which account for 4.4% of total annual costs. The company said: "The solar energy plan will help the company reduce huge energy costs."
According to Reuters, the company has also signed a joint venture agreement with NTPC, the National Power Group of India. It also signed an agreement with the Indian Solar Company for a 1 GW solar project.
Coal of India added: "In addition to the establishment of solar projects, the company is discussing the purchase of 140 megawatts of solar power generation capacity with the National Power Corporation of India."
Previously, the coal giant has signed a memorandum of understanding with NLC India to form a joint venture to jointly produce 3 GW of solar power and 2 GW of thermal power projects.
In November last year, Coal India issued a letter of intent to establish a 100-megawatt solar pilot project in Chhattisgarh for its own use, thereby helping it achieve the solar energy targets set by the government.
Previously, in the “Coal Vision 2030” report of the Coal Company of India, it was emphasized that solar energy will soon become an alternative to coal-fired power generation in the country. The report emphasized the uncertainty of the future of coal in India. "With the increasing threat of climate change to mankind, the global investment in renewable energy and the replacement of coal by clean energy has become a matter of time."