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Coal India plans INR 1 lakh crore investments for its diversification into aluminium value chain and solar industry

EDITED BY : 2MINS READ

The government of India has reportedly approved state-run Coal India Limited’s diversification plan into aluminium value chain and solar industry. Coal India has planned INR 1 lakh crore investments in building two aluminium plants in the eastern region and an entire solar module manufacturing value chain, said two people familiar with the matter.

Coal India plans for INR 1 lakh crore investments for its diversification into aluminium value chain and solar industry

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Coal India Limited will set up three specific-purpose vehicles (SPVs) for INR 45,500 crore integrated solar wafer manufacturing facility, a greenfield aluminium project for INR 38,000 crore, and an aluminium smelting unit with National Aluminium Company Limited for about INR 23,400 crore, according to the report.

Run by captive thermal power units, the greenfield aluminium plant and aluminium smelting unit are expected to come up at Orissa and Jharkhand. However, the final call is yet to be taken by the government.

For advice on matters like potential private partners and technical collaborations, the global consultant Deloitte has been shortlisted.

Coal India secretary Anil Kumar Jain said: “In order to achieve net zero carbon emission, Coal India has to think beyond coal. It has to diversify and reduce dependence on coal.”

No further specific details of the three projects have been disclosed yet. Jain said that Coal India, being one of the key organisations for driving growth in eastern India, would continue to lead the development of the region.

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“More than 3 lakh people work in the company, which has significant economic impact for the eastern part of India. Therefore, Coal India has to continue its lead position as key contributor of the region’s economy besides meeting the country’s energy needs,” he said.

Besides diversification, Coal India will continue to expand its existing projects as well in order to meet the country’s demand for coal. It has a plan to invest INR 2.45 lakh crore in the next two-three years for the expansion. By 2023-24, Coal India will invest over INR 1.22 lakh crore to elevate its coal output.


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