It’s the largest coal miner in the world, and accounts for at least 80% of India’s coal production.
Now, faced with India’s onward march on the path of renewable energy, Coal India Ltd (CIL) finds itself stuttering. So much so that it has decided to shutter as many as 37 coal mines by March of next year.
India’s Coal Ministry, in a review meeting with CIL and its subsidiaries, took special note of the fact that a substantial number of mines had not been able to recover costs in the form of even salaries paid to the workers. It then directed CIL’s arms to conduct a detailed study of such mines and report on action taken.
CIL also explained away the decision, saying its subsidiaries undertake an annual exercise to determine profit- and loss-making mines for comparative study of performance. The decision has been met, predictably, with protests from local labor unions. If and when the mines are shuttered, it would help the company save about $124 million. The mines make up about 9% of the total number of mines operated by CIL.
CIL is not alone in facing the challenge represented by the growing renewable energy sector.
One estimate by the Energy and Resources Institute predicts if the cost of renewable energy and storage continue to fall, India may phase out coal power completely by 2050. Both solar and wind energy prices have been steadily decreasing over the last three years.
In 2016-17, India added over 14,000 megawatts of new renewable energy power compared to almost 7,000 megawatts of new coal power capacity.
But green energy is not the only new challenge coal mines face.