State-run Coal India Ltd (CIL) on Monday said it has signed a pact with Damodar Valley Corporation (DVC) to set up a Rs 16,500 crore ultra-supercritical thermal power project in Jharkhand, as part of its efforts to diversify into power generation.
The proposed 2×800 megawatt (MW) coal-fired power plant will be developed as a brownfield expansion of the existing Chandrapura Thermal Power Station, which currently operates with a 2×250 MW capacity. The project will be executed through a joint venture with equal equity participation from both CIL and DVC.
Coal for the plant will be sourced from nearby coalfields operated by CIL’s subsidiaries Bharat Coking Coal Ltd and Central Coalfields Ltd.
The non-binding memorandum of understanding (MoU) was signed on April 21 in Kolkata in the presence of CIL Chairman P.M. Prasad and DVC Chairman S. Suresh Kumar. The agreement also includes provisions to jointly explore opportunities in thermal and green energy projects, including energy storage solutions, in the DVC valley region.
Ultra-supercritical power plants operate at higher steam temperatures and pressures than conventional supercritical units, offering improved thermal efficiency and reduced carbon emissions.
Coal India, which accounts for over 80% of the country’s coal output, has set a production target of 875 million tonnes and an offtake target of 900 million tonnes by FY26, as it looks to support growing power demand while gradually expanding into energy generation and renewable segments.
Core sector growth rises to 3.8% in March
In separate data released by the Ministry of Commerce and Industry, growth in India’s eight core infrastructure industries rose to 3.8% year-on-year in March 2025, up from a revised 3.4% in February.
The improvement was led by strong output in electricity (6.2%), steel (7.1%), and cement (11.6%), which offset sluggish performance in other segments. However, the core sector’s growth remained under pressure due to a high base effect — it had expanded 6.3% in March 2024.
Coal output growth slowed to 1.6%, while refinery products rose a marginal 0.2%. Fertiliser production declined 8.8%. Crude oil and natural gas continued to contract, with output falling by 1.9% and 12.7% respectively — marking the third and ninth consecutive months of contraction.
“The year-on-year rise in March was driven by electricity generation amid higher temperatures,” said Aditi Nayar, Chief Economist at ICRA. “However, sequential trends were mixed, with moderation in key segments such as fertilisers, coal, and refinery products.”
Madan Sabnavis, Chief Economist at Bank of Baroda, attributed the subdued performance in the oil and gas sector to low global crude prices and rising imports that substituted domestic production.
For FY25, the core sector grew by 4.4% — its weakest performance in five years. This compares to 7.6% in FY24, 7.8% in FY23, and 10.4% in FY22. In FY21, the sector had contracted by 7.8% due to pandemic-related disruptions.
The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity — account for 40.27% of the Index of Industrial Production (IIP), giving them significant weight in measuring industrial activity.
