Coal India, a leading coal producer, has announced plans to construct a 1,600 megawatt coal-powered plant in Jharkhand, eastern India, through a joint venture. The project, requiring an investment of 165 billion rupees ($1.94 billion), aims to address the rising electricity demand in the region.

A JCB machine loads coal onto a dumper at the Deendayal Port in Kandla, in the western state of Gujarat, India, September 25, 2024.

On Monday, Coal India signed a non-binding memorandum of understanding with Damodar Valley Corporation, a state-run power generator, to establish the facility. The plant will consist of two 800 MW units and will expand an existing 500 MW facility in Jharkhand.

In addition, Coal India is developing two thermal power plants at coal pit-heads in Madhya Pradesh, central India, with a combined capacity of 660 MW, and another 1,600 MW plant in Odisha, eastern India. Both projects are scheduled for completion by 2030.

India is working to increase its thermal power capacity to meet growing domestic electricity needs while also expanding non-fossil power sources. This dual approach responds to increasing energy consumption and challenges in securing consistent demand for new power projects.

Several private companies, including Tata Power, JSW Energy, and the Adani Group, are also exploring opportunities to enhance coal-based power capacity to support the nation’s energy requirements.