In a strategic move to cut electricity costs and decrease dependency on imported coal, India is actively exploring ways to switch its power plants to cheaper domestic coal supplies. This initiative was discussed in a recent meeting between senior officials from the coal and power ministries.
India currently operates 15 power plants that rely on imported coal, including major facilities such as Tata Power’s Coastal Power Gujarat, Adani Power Mundra Ltd, Essar Power Gujarat, and JSW Ratnagiri. By transitioning these plants to domestic coal, the government aims to enhance energy security and reduce costs.
Key issues being examined include the availability and cost of high-grade domestic coal, the impact on electricity generation costs, and the readiness of these plants to switch fuels. Further meetings and detailed studies are expected to address these challenges comprehensively.
Initial assessments suggest that the energy charge rate for imported coal-based plants ranges from ₹4.1 to ₹5.6 per unit. In contrast, domestic coal-based plants could see tariffs, including fixed costs, ranging from ₹2.5 to ₹5.5 per unit, depending on transportation costs. This potential cost-saving underscores the economic benefits of utilizing domestic coal.
The coal ministry has already started working on its plan to end thermal coal imports by the fiscal year 2026, aligning with the broader strategy to boost energy self-sufficiency and economic efficiency.
Overall, this initiative highlights India’s commitment to leveraging its domestic resources to achieve greater energy security and cost reductions.
