Coal Ministry encouraging extensive diversification within CPSEs

New Delhi: The Coal Ministry on Tuesday said it is actively encouraging extensive diversification within central public sector units, including Coal India, in line with the country's commitment to varied energy mix.

The ministry has two large Central Public Sector Enterprises (CPSUs), Coal India Ltd (CIL) and NLC India Ltd (NLCIL), under its administrative control.

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"In line with India's commitment to diversifying its energy mix, the Ministry of Coal is actively promoting extensive diversification within CPSEs, establishing pit-head TPPs, solar power plants, coal/lignite gasification plants, and critical mineral exploration," the coal ministry said in a statement.

Stressing the use of de-coaled land for cost-effective pit-head thermal power plants, the ministry's directive targets to secure sustainable operations for both PSUs, foreseeing a future coal surplus.

Coal India is a hard-core coal company with seven arms while NLCIL is in lignite, power generation, new renewable energy and coal mining.

Diversification was felt a necessity, especially in the light of climate change narrative, diversifying into non-coal, securing new businesses and productively utilising sizeable reserves.

Coal India contributes about 80 percent of the country's domestic coal production and accounts for approximately 65 per cent of the consumption of fossil fuels in the country.

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