India likely to raise thermal power target to 100 GW to meet growing demand: Report

Coal

The government plans to add 100 GW of coal-fuelled power in the next seven years, revising upwards its target of 80 GW to meet the rising electricity demand, Mint has reported

The extra capacity will entail an additional investment of Rs 1 lakh crore, as every 1 MW of power costs Rs 5 crore on an average, the report cited sources as saying.

The roadmap for additional capacity is still under consideration, though the vision is to use India's vast reserves of domestic coal for power generation, a source said. India is the world’s second largest importer of thermal coal.

Moneycontrol couldn't independently verify the report.

India needs a plan to raise its non-fossil energy capacity to 600 GW, according to a study by The Council on Energy, Environment and Water (CEEW) released on March 12.

The country's power demand hit a record high of 238 GW in February, with peak demand likely to touch 270 GW in the summer months.

The government has been trying to attract private players and promote sustainable coal extraction to support the rising power demand. The coal ministry recently said it waived off the mandatory upfront payment for underground coal projects and slashed the minimum revenue share from 4 percent to 2 percent. The move is aimed at lowering the financial barriers for private participation and fast-tracking project implementation.

Also read: India's coal import declines marginally in April-February period