- 06 Sep 2024
- ICICI Securities
COAL INDIA AIMS TO ADD 5 GW GREEN ENERGY CAPACITY BY 2028
News: According to media reports, Coal India plans to expand its renewable energy capacity by adding 5 gigawatts (GW) by 2028. As part of its strategy to diversify its green energy portfolio, the company is also exploring the development of pump storage projects in its depleted open-cast mines. Additionally, Coal India is in discussions with various countries to acquire critical mineral assets, including lithium, nickel, cobalt, molybdenum, graphite, phosphates, and potash.
Views: The company aims to diversify its business by expanding into renewable energy and critical minerals. It has already commissioned 150 megawatts (MW) of renewable energy (solar power), with an additional 450 MW in various stages of development and expected to be operational by the end of FY25. Additionally, the company has secured a 300 MW tender from Gujarat. Moreover, it is exploring mines for lithium in Argentina, Bolivia, and Chile. We remain positive about Coal India’s long-term prospects, driven by the company’s ambitious goal of achieving 1000 MT of coal production by FY26, robust demand from the power sector, investments in new technology domains such as coal gasification, inexpensive valuation, and healthy dividend yield.
Impact: Neutral