Private Indian companies, including Adani Power, JSW Group, and Essar Power, are exploring opportunities to invest in approximately 10 gigawatts of coal-fired power capacity over the next decade, signaling a revival of significant private sector engagement in the sector following a prolonged absence. This development, not previously disclosed, could entail substantial investments amounting to billions of dollars and indicates a renewed interest in an industry perceived as financially challenging.
The potential investments have been communicated to India’s power ministry by key players in the sector, as outlined in a government presentation seen by Reuters and confirmed by sources familiar with the matter. Adani Power, JSW Group, and Essar Power are among the companies expressing interest in expanding existing plants or reviving stalled projects facing financial constraints.
While the resurgence of private investment in coal-fired power projects underscores renewed confidence in the sector’s financial viability, it also raises concerns about potential implications for India’s efforts to transition towards cleaner energy sources and reduce carbon emissions. The move comes amid Prime Minister Narendra Modi’s government’s push to attract private capital to bolster coal-fired capacity by 80 gigawatts by 2032.
India’s coal-fired power plants currently contribute half of the nation’s total installed capacity of 430 gigawatts, with renewables accounting for 135 gigawatts and hydroelectric power making up 47 gigawatts. The proposed investments by private firms could significantly impact India’s energy landscape and raise questions about the balance between energy security, economic considerations, and environmental sustainability.