Govt Eyes Alternative use of coal, emptied mines as power plants well filled | Mint

New Delhi: The Government is considering a renewed focus on alternative use of coal and subdued mines, as the domestic production of fuel has increased over the past few years and the power sector supply is provisionally stable. “Now that the production and supply problems have been addressed and the domestic availability of coal for power and other sectors is not a problem, diversification efforts, including coal gasification, and to get the plan to pump up storage projects (PSP) at strawning or emptied mines, a person who is aware of the development said. The diversification of coal use has been on the agenda over the past few years, but the increase in domestic coal production and supplies to the power sector was at the heart of the ministry’s operations. The government has already launched the £ 8,500 CRORE LIFE VIBLIAGE GAPING FINANCING (VGF) scheme for coal crop and chose Jindal Steel and Power Ltd, New Era Cleantech Solution PVT LTD and Greta Energy Ltd under the component for the incentive of private players. Coal gasification, a process in which it is converted into fuel gas, is a very capital -intensive process and the low quality of the mineral produced in India provides an obstacle to effective gasification. Despite the government’s efforts, it has not yet picked up, which has led the government to execute the VGF scheme in January 2024. The center aims to meet 100 million tonnes of coal by 2030. The government also approved the investment by CoAL India Ltd (CIL) in joint ventures with Bharat Heavy Electricals Ltd (Bhel). Gasification makes it possible to convert coal into synthetic gas or synthesis, which can be used to produce downstream products such as methanol, ammonium nitrate, synthetic natural gas (SNG) and fertilizers. The idea of ​​setting up pump storage projects (PSPs) was initially designated a few years back, but it did not rise. The ministry, Coal India and NHPC, looked into the feasibility of the projects, but the plan did not rise. PSPs are hydro projects where two reservoirs generate power at different heights as water moves through turbines. “However, the ministry will again expect PSP in the subdued mines and projects to become successful and will start at the front soon,” another person said in knowledge of the developments, adding that, as coal mines have a substantial height, it would be sufficient to create a hydro storage at the top, which can be used at night. Inquiries sent to the Union Ministry of Coal remained unanswered until press time. The reform has seen the coal sector reforms over the past few years, including the opening of the coal sector in 2020, and the launch of commercial mining auctions. Furthermore, the rush to increase supplies to the power sector to the crisis situation in 2021 led to record levels of coal production in the country. In FY25, the coal production of India reached 1.04 billion tonnes, and the government intends to reach an annual production of 1.5 billion tonnes by the end of the decade. Although coal-based power plants are likely to dominate India’s energy mixture for several years, the energy transition journey and the increase in renewable energy capacity are narrowing the window for the use of coal for the country, which has the world’s fourth largest reserve of the mineral, which requires the government to look at newer and sustainable ways to use fuel. First published: 17 Apr 2025, 07:27 pm Ist