Kolkata: The government is keen to make power plants in the country “self-reliant” by increasing domestic coal production and has asked state-run Bharat Heavy Electricals Ltd to work on a plan to “modify” the power stations, which are heavily dependent on imported coal.
“The government has envisaged on ramping up production and try to replace this imported coal with Indian domestic coal…I have asked BHEL to find a design to modify these imported plants so that they become self-reliant,” Coal Minister Piyush Goyal said on the sidelines of an MCC Chamber of Commerce’s event here on Sunday.
The minister, however, did not give further details on the plan and the proposal sent to Bharat Heavy Electricals. The government has said it could save 400 bln rupees in foreign exchange in the current financial year through a reduction in coal imports.
A senior Coal India Ltd official had also told Cogencis on Sep 8 that the company aimed to cut coal imports by 40 mln tn in 2016-17 (Apr-Mar) by tweaking its supply policy to the non-power sector and coastal power plants.
At 1103 IST, shares of Bharat Heavy Electricals were up 2% at 137.40 rupees on the National Stock Exchange. Stressing the need for renewable energy, Goyal said 40% of the country’s installed capacity would be from renewable sources–wind, solar and water—by 2030.
“It will also help the country in reducing carbon dioxide emissions for which India is committed to.” Goyal said he was confident that the government would be able to bring on board state utilities that had not yet fully subscribed to renewable energy commitments.
“I am sure we will be able to persuade states and not go for regulatory measures…otherwise we can invoke stricter penalties on such utilities for not fulfilling the renewable power purchase obligation,” the minister added.
