India’s energy and mining landscape is seeing movement on multiple fronts, from the recovery of coal supplies to new investments in mining and mineral processing. The developments come as power producers work to rebuild coal inventories after monsoon-related disruptions, while policymakers and industry players look to strengthen domestic resource availability.
Coal availability at thermal power plants has begun improving as mining operations recover, although some generating stations continue to operate with low stocks. At the same time, NMDC is expanding its mining portfolio beyond iron ore with plans to enter commercial thermal coal production, while Rajasthan is using gas-based generation to meet peak electricity demand amid supply constraints.
The focus is also widening beyond conventional fuels. Andhra Pradesh is pursuing a mineral value-addition strategy through the proposed Rare Earth Corridor, aiming to attract investment, create jobs and develop domestic capabilities across processing, refining and advanced manufacturing.
Here’s a look at today’s biggest energy and mining stories.
Coal supplies to thermal power plants are showing signs of recovery as monsoon rains ease and mining operations gradually resume.
Coal loading to the power sector increased from 370 rakes on September 3 to 444 rakes on September 6, providing some relief to generating stations that had seen stocks fall to critical levels.
Coal India’s average daily production rose 35% to around 1.83 million tonnes on September 6, compared with around 1.36 million tonnes during the first three rain-affected days of September. Average daily despatches to the power sector also increased 24% to around 1.7 million tonnes.
The government is closely monitoring thermal plants holding less than 25% of their normative coal requirement, while additional supplies from captive mines are also beginning to recover.
NMDC is preparing to begin commercial thermal coal production between October and December and aims to sell around 1 million tonnes of coal in FY27 as it diversifies its mining operations.
The company has reached the coal seam at its Tokisud North mine and expects production to begin next quarter. The mine has reserves of 52 million tonnes and a peak rated annual capacity of 2.3 million tonnes.
NMDC also plans to begin developing the Rohne coking coal block within FY27, with production potentially starting as early as FY28. The block has reserves of 191 million tonnes and a peak rated capacity of 8 million tonnes.
The diversification forms part of NMDC’s roadmap to 2030, with Chairman Amitava Mukherjee targeting at least 20% of revenues from minerals other than iron ore by the end of the decade.
“Right now, we are 99.9 per cent an iron ore company.” — Amitava Mukherjee, Chairman, NMDC
Rajasthan has activated its 330 MW Dholpur Combined Cycle Gas Power Plant to meet peak electricity demand as monsoon disruption reduces coal supplies to the state’s thermal power plants.
The state currently requires around 24 coal rakes a day, with each rake carrying approximately 4,000 tonnes. However, only around 18 rakes are being received, creating a daily shortfall of six rakes.
Supplies from captive coal mines had fallen from an average of 14–15 rakes a day to just seven before Coal India stepped in with additional supplies.
The situation has been further complicated by the maintenance shutdown of units at the 1,200 MW Kalisindh thermal power plant. Dholpur has been operating continuously since September 1 to support the system during periods of peak demand.
However, gas-based generation comes at a significantly higher cost, with the generation cost at Dholpur estimated at more than Rs 35 per unit.
The government has stepped up coal supplies to power plants through increased railway movement after stocks at several generating stations fell below critical levels.
Coal loading to the power sector rose from 370 rakes on September 3 to 444 rakes on September 6, including a 31-rake increase on September 6 alone.
The increase follows heavy rainfall in coal-producing states including Odisha, Jharkhand and Chhattisgarh, which disrupted mining and transportation.
Coal India, its subsidiaries, the Singareni Collieries Company and captive mine operators are increasing supplies as the government monitors thermal plants holding less than 25% of their required inventories.
Coal remains central to India’s power system, accounting for around three-quarters of electricity generation, making the stability of mining and transportation networks critical for grid reliability.
Andhra Pradesh is looking to convert its coastal mineral resources into a larger manufacturing opportunity, with the proposed Rare Earth Corridor aimed at creating an integrated ecosystem spanning extraction, processing, refining and advanced manufacturing.
The state has deposits of beach-sand minerals including ilmenite, rutile, zircon, monazite, garnet and sillimanite, with applications across aerospace, defence, electronics, ceramics, nuclear energy and pharmaceuticals.
Monazite is particularly important because it is India’s principal rare-earth-bearing mineral and a source of thorium. The proposed ecosystem aims to increase domestic production of rare-earth oxides, permanent magnets and advanced materials while reducing import dependence.
The state government is targeting Rs 50,000 crore in investments and around 40,000 jobs over the next decade.
Rather than focusing only on mineral extraction, Andhra Pradesh is looking to develop processing and value-addition capabilities and create mineral-to-manufacturing clusters.
“It will also strengthen India’s supply chain for strategic and high-value minerals.” — Mukesh Kumar Meena, Principal Secretary, Mines and Geology, Andhra Pradesh
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