Coal India signs MoU with Haryana Power Purchase Centre, Stock Jump

Coal India Ltd has recently inked a deal with the Haryana Power Purchase Centre. The memorandum of understanding (MoU) allows for the supply of 800 megawatts (MW) of electricity from Mahanadi Basin Power Ltd a subsidiary of Mahanadi Coalfields Limited (MCL) to Haryana. MCL stands as the leading coal producing arm of Coal India operating in Odisha.  This agreement is crucial for meeting Haryana's growing energy requirements.

Utilising AdvanceTechnology

Coal India's upcoming thermal power projects are set to incorporate Ultra Super Critical technology. This advanced technology offers a cleaner alternative to traditional coal fired plants by reducing carbon emissions, the strategic positioning of these plants near coal mine pit-heads promises various benefits, such as decreased coal transportation costs, minimized transit losses, enhanced plant load factors and the utilisation of higher quality coal. These measures collectively contribute to minimizing environmental impact.

Coal India is actively collaborating with state distribution companies (discoms) to ensure a steady electricity supply from the upcoming Mahanadi Basin Power Ltd plant. An agreement for purchasing power has already been finalized with Assam Power Distribution Company Ltd (APDCL) for 1200 MW from this plant. This effort is in line with Coal India's larger strategy to assist the Indian government in achieving its ambitious target of adding 80 gigawatts (GW) of thermal power capacity by 2030 aimed at meeting the nation's increasing energy demand.

Commitment to Coal Production

India's plans for expanding its coal production capacity extend beyond the target of doubling it by 2030, despite mounting global pressure to reduce fossil fuel usage. Minister for Coal Mines and Parliamentary Affairs stressed the government is dedicated to boosting coal production to meet the expected surge in the nation's electricity demand in the future.

Coal India has demonstrated strong performance reporting a 17.81% year-on-year growth in consolidated net profit to ₹9093.69 crore for the third quarter of the fiscal year 2024. This growth is supported by a 2.79% yoy increase in revenue reaching ₹36,153.97 crore driven by higher coal sales compared to the corresponding period last fiscal year.

Final Words

Coal India's recent MoU with the Haryana Power Purchase Centre is a step towards meeting Haryana's energy needs. Embracing cleaner energy technologies and actively pursuing partnerships with state discoms, Coal India is aligned with India's ambitious energy goals. Despite global pressure the company remains committed to expanding coal production to address the country's ongoing power demand.