Saturday, June 25, 2022

Coal India preps for ‘sunny’ future, to venture into solar power, ingot, wafer business

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  • CIL board has also approved the formation of SPVs for a solar power value chain (ingot-wafer-cell-module) business vertical and new and renewable energy business vertical

  • Central Coalfields Ltd (CCL), a wholly-owned subsidiary of Coal India Ltd, will develop an integrated aluminium complex

New Delhi: The Board of Directors at Coal India Ltd (CIL) has approved a plan that marks one of the most expansive and decisive diversification initiatives taken by the state-run coal miner in its history — that of venturing into the solar power value chain and aluminium value chain. At a meeting held on Thursday, the Board of Directors at CIL, accorded its ‘in-principle’ approval to venture into aluminium value chain (Mining-Refining-smelting) and solar power value chain, Coal India Ltd said in a regulatory filing to the stock exchanges.

Coal India is now entering solar ingot, wafer, cell, module business

According to the document, the coal miner will now venture into the solar ingot, wafer, cell, module business. The Board of Directors has also approved the formation of special purpose vehicles (SPVs) for a solar power value chain (ingot-wafer-cell-module) business vertical and new and renewable energy business vertical, which will undertake renewable power generation projects. 

ALSO READ: CIL to set up 3,000 MW of solar power projects worth Rs 5,650 cr by FY24

Coal India Ltd already has plans to set up 14 rooftop and ground-mounted solar power projects of 3,000 megawatt (MW) capacity by financial year 2023-24 (FY24) at an investment of about Rs 5,650 crore, the Maharatna coal PSU had said in November.

CCL to develop integrated aluminium complex

Central Coalfields Ltd (CCL), a wholly owned subsidiary of Coal India Ltd, will develop an integrated aluminium complex, the document said. The board has also accorded its approval for the formation of an SPV for this Greenfield project. Under the project, CCL will undertake mining, refining and smelting of aluminium.

Coal India making itself future-ready

The decision of CIL’s Board of Directors has set the ball rolling on one of the most decisive and expansive diversification plans undertaken by India’s Mahratna PSU engaged in the mining of coal, which is a conventional fuel. Even though coal is going to power India’s electricity generation for the next four decades, the initiatives signify the coal PSU’s plan to be future-ready and extend its clout beyond the conventional fuel sector into a segment that will ensure its survival after coal is phased out. 

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

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