Power policy draft amended by govt to stop new coal-fired capacity
POWER & RENEWABLE ENERGY

Power policy draft amended by govt to stop new coal-fired capacity

In a major effort to combat climate change, India aims to remove a crucial clause from the final draft of its National Electricity Policy (NEP), stopping the construction of new coal-fired power plants in addition to those already planned, according to sources. The decision would MAKE China the only major economy accepting new proposals to install substantial amounts of additional coal-fired capacity, if it were to be accepted by the cabinet led by Prime Minister Narendra Modi.

As the majority of developing nations reduce capacity to achieve climate commitments, India and China account for nearly 80% of all coal projects that are now under construction. According to E3G, an independent climate think tank, only 20 countries will have more than one coal project planned by the beginning of 2023. One of the three government sources said, "After months of discussion, we have come to the conclusion that we would not need new coal additions aside from those already in the pipeline."

If adopted, the new regulation would not have an influence on the 28.2 GW of coal-based electricity that are now under development, according to the sources. Together, China and India have pushed for the option for nations to select their own roadmap for reducing emissions. India has repeatedly declined to establish a schedule for the phase-out of coal, citing low per-capita emissions, soaring renewable energy capacity, and the necessity for cheap fuel sources. India's proposed coal power capacity is the biggest after China.

Activists have pushed for a ban on new coal-fired plants, believing that doing so would at least assist to lower the share of the polluting fuel in total power generation. Coal is anticipated to continue to be the primary fuel for producing electricity in India for decades. According to the sources, the draught, India's first attempt to update its 2005 electricity policy, also suggests delaying the closure of existing coal-fired plants until energy storage for renewable power becomes commercially viable.

In order to accommodate the strong demand for electricity, old coal-fired power plants with a combined capacity of 13 GW have so far been designated for operation after retirement deadline, they claimed.

In a major effort to combat climate change, India aims to remove a crucial clause from the final draft of its National Electricity Policy (NEP), stopping the construction of new coal-fired power plants in addition to those already planned, according to sources. The decision would MAKE China the only major economy accepting new proposals to install substantial amounts of additional coal-fired capacity, if it were to be accepted by the cabinet led by Prime Minister Narendra Modi. As the majority of developing nations reduce capacity to achieve climate commitments, India and China account for nearly 80% of all coal projects that are now under construction. According to E3G, an independent climate think tank, only 20 countries will have more than one coal project planned by the beginning of 2023. One of the three government sources said, After months of discussion, we have come to the conclusion that we would not need new coal additions aside from those already in the pipeline. If adopted, the new regulation would not have an influence on the 28.2 GW of coal-based electricity that are now under development, according to the sources. Together, China and India have pushed for the option for nations to select their own roadmap for reducing emissions. India has repeatedly declined to establish a schedule for the phase-out of coal, citing low per-capita emissions, soaring renewable energy capacity, and the necessity for cheap fuel sources. India's proposed coal power capacity is the biggest after China. Activists have pushed for a ban on new coal-fired plants, believing that doing so would at least assist to lower the share of the polluting fuel in total power generation. Coal is anticipated to continue to be the primary fuel for producing electricity in India for decades. According to the sources, the draught, India's first attempt to update its 2005 electricity policy, also suggests delaying the closure of existing coal-fired plants until energy storage for renewable power becomes commercially viable. In order to accommodate the strong demand for electricity, old coal-fired power plants with a combined capacity of 13 GW have so far been designated for operation after retirement deadline, they claimed.

Next Story
Infrastructure Urban

Arya Omnitalk Powers India’s Toll Revolution with AI-Driven Solutions

Arya Omnitalk, a leader in intelligent transportation systems, is revolutionising toll collection across India’s national highways with its advanced AI-powered Toll Management Solutions. Designed for rugged remote toll locations, the company’s cutting-edge technology ensures seamless, reliable, and secure tolling—especially during high-capacity operations exceeding 200%. By integrating real-time analytics, cyber protection, and FASTag-based cashless tolling, Arya Omnitalk’s systems are significantly reducing congestion, improving transparency, and enhancing revenue assurance. Its full..

Next Story
Infrastructure Urban

Over 800 Join Anant Raj Runathon to Mark Earth Day

Over 800 participants came together at Anant Raj Estate, Sector 63A, Gurugram, for the Anant Raj Runathon 2025—a vibrant celebration of Earth Day through fitness, community bonding, and sustainability. Curated by renowned running coach Ravinder, the event featured four categories: 10-mile and 5-mile timed runs, a 5-mile walkathon, and a 1-mile kids’ run. Runners of all ages took to the green, scenic roads of the area—some chasing personal bests, others running for a cause. The Runathon was designed to promote healthy living while raising awareness about sustainable practices. Participa..

Next Story
Infrastructure Urban

PETRONAS Lubricants, Quaker Houghton Ink Strategic Deal

In a significant step towards strengthening industrial operations in India and Malaysia, PETRONAS Lubricants India Pvt. Ltd (PLIPL) and Quaker Houghton have announced a strategic partnership aimed at delivering high-performance industrial fluid solutions to key manufacturing sectors, including steel production. The collaboration combines the strengths of both companies—leveraging PETRONAS Lubricants India’s maintenance lubricant technologies and Quaker Houghton’s deep expertise in metalworking fluids. Starting from the second quarter of 2025, Quaker Houghton will begin offering PETRONAS..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?