In a statement, the coal ministry stated, "The Ministry of Coal is actively promoting extensive diversification within CPSEs, establishing pit-head TPPs, solar power plants, coal/lignite gasification plants, and critical mineral exploration, in line with India's commitment to diversifying its energy mix."

The ministry emphasised the utilisation of de-coaled land for cost-effective pit-head thermal power plants. The directive aims to ensure sustainable operations for both PSUs, anticipating a future coal surplus.

CIL, a dedicated coal company with seven arms, and NLCIL, involved in lignite, power generation, new renewable energy, and coal mining, are the two CPSUs under the ministry's control.

The necessity for diversification was underscored, particularly in the context of the climate change narrative. The goal is to diversify into non-coal sectors, secure new businesses, and effectively use substantial reserves.

CIL, which contributes around 80 percent of the country's domestic coal production, accounts for approximately 65 percent of the consumption of fossil fuels in the country.