The Role of Coal in a Sustainable Energy Mix for India: A Wide-Angle View

Mohan y, M i iunjoy (Ed.); Sa ka , Runa (Ed.)
Book
The Role o Coal in a Sus ainable Ene gy Mix o India: A
Wide-Angle View
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: Mohan y, M i iunjoy (Ed.); Sa ka , Runa (Ed.) (2024) : The Role o Coal in a
Sus ainable Ene gy Mix o India: A Wide-Angle View, ISBN 978-1-000-98956-4, Rou ledge, London,
h ps://doi.o g/10.4324/9781003433088
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As India swi ches away om a coal-based o a mo e sus ainable ene gy use pa e n,
which pa hway will i adop ? Wha is he na u e o challenges ha i will ace, and
who will be a ec ed? Who will gain? This olume o e s insigh s in o he s eps and
challenges in ol ed in his ansi ion and add esses some u gen ques ions abou he
possible pa hways o India’s enewable ene gy gene a ion.
Including con ibu ions om esea che s, policymake s, and p ac i ione s, i d aws on
di e en disciplines, anging om science and echnology o economics and sociology,
and si ua es he issue o low ca bon ansi ion wi hin an in e disciplina y amewo k.
India has commi ed o g adual deca bonisa ion o i s economy. This book akes his
as i s s a ing poin and uses a wide-angle lens, inco po a ing mac o as well as mic o
iews, o unde s and he possible nex s eps as well as ade-o s ha will ine i ably be
posed. I inco po a es he pe spec i es o all s akeholde s anging om cen al and s a e
go e nmen s, public and p i a e sec o i ms, on he one hand, o indi iduals and local
communi ies, on he o he , o explo e hei ole in he ansi ion, hei in e es s, and how
hese will change and e ol e.
This imely olume will be o in e es o s uden s and esea che s o en i onmen al
s udies, de elopmen s udies, en i onmen al economics, poli ical s udies, and Asian
s udies. I will also be use ul o academics, p ac i ione s, and policymake s wo king on
issues ela ed o clima e change, sus ainable de elopmen , ene gy policy and economics,
and public policy.
M i iunjoy Mohan y is P o esso wi h he Economics G oup o he Indian Ins i u e
o Managemen Calcu a (IIM Calcu a), India. He is also cu en ly a membe o IIM
Calcu a’s Cen e o De elopmen and En i onmen Policy.
Runa Sa ka is P o esso wi h he Economics G oup o he Indian Ins i u e o Managemen
Calcu a (IIM Calcu a), India. She is also cu en ly he Coo dina o o IIM Calcu a’s
Cen e o De elopmen and En i onmen Policy.
The Role o Coal in a Sus ainable
Ene gyMix o India
The Role o Coal in a Sus ainable
Ene gy Mix o India
A Wide-Angle View
Edi ed by M i iunjoy Mohan y and Runa Sa ka

Designed co e image: © Ge y Images
Fi s published 2024
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© 2024 selec ion and edi o ial ma e , M i iunjoy Mohan y and Runa Sa ka ;
indi idual chap e s, he con ibu o s
The igh o M i iunjoy Mohan y and Runa Sa ka o be iden i ied as he au ho s
o he edi o ial ma e ial, and o he au ho s o hei indi idual chap e s, has been
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Cen e o De elopmen and En i onmen Policy, Indian Ins i u e o Managemen
Calcu a, India
T adema k no ice: P oduc o co po a e names may be adema ks o egis e ed
adema ks, and a e used only o iden i ica ion and explana ion wi hou in en o
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B i ish Lib a y Ca aloguing-in-Publica ion Da a
A ca alogue eco d o his book is a ailable om he B i ish Lib a y
ISBN: 978-1-032-51646-2 (hbk)
ISBN: 978-1-032-55961-2 (pbk)
ISBN: 978-1-003-43308-8 (ebk)
DOI: 10.4324/9781003433088
Typese in Sabon
by Dean a Global Publishing Se ices, Chennai
Lis o Appendices and Boxes iii
Lis o Figu es x
Lis o Tables xii
Con ibu o s xi
P e ace and Acknowledgemen s xxi
Abb e ia ions xxi
In oduc ion 1
MRITIUNJOY MOHANTY AND RUNA SARKAR
PART 1 A Mac oeconomic Analysis o Al e na e Pa hways 9
A Mac oeconomic Analysis o Al e na e Pa hways: an In oduc ion
MRITIUNJOY MOHANTY AND RUNA SARKAR
1 India’s Coal and Coal-Fi ed Elec ici y Needs by 2030: Clea ing Vision
beyond Black Coal andHazySkies 13
SUNIL DAHIYA, ADITYA LOLLA, PRIYANSHU GUPTA, ANDNANDIKESH SIVALINGAM
2 India’s Ene gy T ilemma and Coal-based Powe Gene a ion 28
SAMBIT BASU AND SOUMYA PRAKASH NAYAK
3 Ene gy T ansi ion and Cen e–S a e P io i ies: Alignmen s and
Misalignmen s o Policies and Decisions 43
TIRTHANKAR MANDAL
4 Mac oeconomic Impac s o Coal T ansi ion 54
SAON RAY, PIYALI MAJUMDER, AND VASUNDHARATHAKUR
5 The Social Aspec s o India’s Ene gy T ansi ion: Coal, C i ical Mine als
and Socio-Economic Dependencies 75
VIGYA SHARMA AND JULIA LOGINOVA
Con en s
i Con en s
6 Deep Elec i ica ion in India: A Re iew o S a egies, Policies, and Sec o al
De elopmen s 104
SARTHAK SHUKLA, SHUBHAM THAKARE, AND RAGHAVPACHOURI
PART 2 Go e nance and Policy Pe spec i es 117
Go e nance and Policy Pe spec i es: an In oduc ion
MRITIUNJOY MOHANTY AND RUNA SARKAR
7 Go e nance P inciples o a Jus Ene gy T ansi ion 119
SIMRAN GROVER, NAINI SWAMI, AND V. SURESH
8 Policy F amewo k o Ene gy T ansi ion in India 135
SARTHAK SHUKLA AND RAGHAV PACHOURI
9 Indus ial Policy 2.0: Policy Space and Deca bonisa ion 156
MRITIUNJOY MOHANTY, SAON RAY, AND NAINI SWANI
10 In e na ional Expe iences on Jus Ene gy T ansi ion Planning and Lessons
o India 168
MADHURA JOSHI AND SWATI DSOUZA
11 G ounded Pe spec i es on Ene gy T ansi ion – The View o Panchaya
Membe s on Ene gy T ansi ion and Impac o Clima e Change 186
JAHNAVI G. PAI, MUNNA JHA, AND VINUTA GOPAL
PART 3 Indus y: Oppo uni ies and Challenges 199
Indus y: Oppo uni ies and Challenges – an In oduc ion
MRITIUNJOY MOHANTY AND RUNA SARKAR
12 Re o i Deca bonisa ion and Reu ilisa ion o The mal Powe Plan s 203
SUCHARITA BHATTACHARJEE AND TRINAYANI SEN
13 Fu u e-P oo ing India’s Coal PSUs: An Analysis o CIL and NTPC 216
SAARTHAK KHURANA, ARNAB SARKAR, AND BALASUBRAMANIAN VISWANATHAN
14 E alua ion o Ene gy and En i onmen al E iciency o he Indian The mal
Powe Plan s: A S a e-Le el Analysis 240
SABUJ KUMAR MANDAL
15 Ene gy S o age and I s Po en ial Role in Elec ici y T ansi ion 251
SHUBHAM THAKARE AND RISHIKESH SREEHARI
16 In e na ional Expe iences: The Cases o Ibe d ola, Enel, andNex E aEne gy 264
SHUBH MAJUMDARR, ABHINAV JINDAL, SHANTANUSRIVASTAVA AND VIBHUTI GARG
Con en s ii
PART 4 In es o s and Sha eholde s 279
In es o s and Sha eholde s: an In oduc ion
MRITIUNJOY MOHANTY AND RUNA SARKAR
17 Financing India’s 2030 NDC Ta ge s and Beyond 283
VAIBHAV PRATAP SINGH AND NEHA KUMAR
18 T ansi ion Finance 299
AANANDITA SIKKA, NEHA KHANNA AND DHRUBAPURKAYASTHA
19 Role o Domes ic Ins i u ional Capi al in Funding India’s Ene gy T ansi ion 311
SHANTANU SRIVASTAVA
20 Ope a ionalising Jus T ansi ion in India: Financing Challenge and Op ions 329
NEHA KUMAR AND SURANJALI TANDON
21 In e na ional Clima e Financing and Jus Ene gy T ansi ion: Explo ing he
Syne gies 343
PRADIP SWARNAKAR AND RAJSHRI SHUKLA
Index 353
Sambi Basu is he Di ec o (P og ams) and Chie Ene gy Economis o Powe
Founda ion o India. Sambi has mo e han 25 yea s o expe ience as an Ene gy Policy
and Regula o y Economis . He has engaged wi h he public and p i a e sec o s, de el-
opmen banks and communi ies, in India and ab oad, o unde ake esea ch and eco-
nomic analysis on ene gy p ojec s.
Ch is ophe Bea on is Lead, Sus ainable Ene gy Consump ion in IISD’s Ene gy p o-
g amme. His esea ch ole spans a ious p ojec s wi hin IISD’s ade and clima e
change po olio. He manages he India p og amme wi hin IISD Ene gy. Ch is has a
mas e ’s deg ee in In e na ional Rela ions om he John Hopkins School o Ad anced
In e na ional S udies.
Sucha i a Bha acha jee is a de elopmen sec o s a egis wi h expe ience on a gamu
o issues pa icula ly ocusing on En i onmen Sus ainabili y, In as uc u e and
Go e nance wi h “Communi y” as he p ime s akeholde . She is cu en ly wo king as
a Policy Analys and Depu y Head o CUTS In e na ional – Calcu a Resou ce Cen e.
Bad i Cha e jee has o e 10 yea s o expe ience wo king in a ious media houses.
P io o joining Asa as a Communica ions and Engagemen S a egis , he was an
en i onmen jou nalis a Hindus an Times. Bad i has pionee ed wo k in c ea ing a
“Simpli ying Clima e Science” e ical in Asa ha p o ides media access o Indian
scien is s and academics.
Susmi a Cha e jee has ea ned an M.A. in De elopmen om Azim P emji Uni e si y.
She has expe ience wo king as a p o essional on gende issues and u al li elihoods
a he Sus ainable Li elihood Ins i u e, Au o ille. He mos ecen esea ch a he
Swi chON Founda ion ocuses on dis ibu ed enewable ene gy and i s in eg a ion o
imp o e u al li elihood p ospec s o unde se ed communi ies.
Sunil Dahiya is Analys wi h CREA, leading i s wo k in Sou h Asia. He has o e 11 yea s
o expe ience wo king o non-p o i s on di e se issues. His expe ise is esea ch, pol-
icy suppo , and coali ion de elopmen on he issues o he ene gy ansi ion, clima e
change, ai pollu ion, and communi y igh s, e c.
Sayan an Dey is an a id esea che who g adua ed om he Uni e si y o Delhi wi h
a mas e ’s in an h opology. His p o essional a ilia ion as a esea che is wi h he
Swi chON Founda ion, whe e he wo ks o p omo e sus ainabili y and enewabili y as
means o p ese ing he en i onmen . He aims o e ec i ely amalgama e heo e ical
amewo ks in p ac ice and b oaden his body o knowledge.
Con ibu o s

Con ibu o s x
Swa i Dsouza is he India lead analys o he In e na ional Ene gy Agency. He esea ch
in e es s include Jus T ansi ions, powe and anspo sec o deca bonisa ion, and
supply chain secu i y. P io o his, a B ookings India (now CSEP), she managed and
co-edi ed he book The Nex S op: Na u al Gas and India’s Jou ney o a Clean Ene gy
Fu u e, which pu s oge he a oadmap o inc ease gas consump ion in India.
Vibhu i Ga g is Di ec o , Sou h Asia, wi h he Ins i u e o Ene gy Economics and
Financial Analysis. Vibhu i’s ocus is on p omo ing sus ainable de elopmen h ough
in luencing policy in e en ion on ene gy p icing, adop ion o new echnologies, sub-
sidy e o ms, enhancing clean ene gy access, access o capi al, and p i a e pa icipa-
ion in a ious a eas o he ene gy sec o .
A una a Ghoshal ea ned his enginee ing deg ee be o e comple ing his pos g adua e
(MSW) s udies a IGNOU. A e wo king wi h emo e ibal communi ies o Jha khand
o PRADAN, A una a wo ked as a esea che o PRADAN, EKJUT, JSLPS, OTELP,
TSRDS, UNICEF, e c. He e u ned o he M&E ield and wo ked o Wo ld Heal h
Pa ne s and Ac ionAid Associa ion be o e his cu en associa ion wi h Swi chON
Founda ion as a esea che in ene gy, wa e , ag icul u e, and sus ainable ci ies.
Vinu a Gopal is ounde and Chie Execu i e O ice o Asa Social Impac Ad iso s P
L d. and a ecipien o he Clima e B eak h ough Awa d 2022. She has been wo k-
ing on en i onmen al and social jus ice issues o mo e han wo decades and leading
se e al success ul campaigns on clima e change and social jus ice.
Sim an G o e is he ounde and CEO o he Cen e o Ene gy, En i onmen , and
People (CEEP), an ini ia i e o ene gy equi y and clima e jus ice. Sim an has subs an-
i e expe ience in he domains o enewable ene gy, applied esea ch, and en ep e-
neu ship. He wo ks o p omo e cons i u ional alues and democ a ic p ac ices in he
domain o ene gy and clima e go e nance.
Manideep Gudela is Resea ch Fellow a he Cen e o Ene gy, En i onmen , and People
(CEEP). He is a mul idisciplina y esea che wo king p ima ily in ene gy policy, ocus-
ing on deca bonisa ion. His wo k includes acking na ional and subna ional de el-
opmen s in elec ici y a i s, egula ions, subsidies, and he pe o mance o public
u ili ies.
P iyanshu Gup a is Assis an P o esso in he Business Sus ainabili y a ea a Indian
Ins i u e o Managemen Lucknow, India, whe e he eaches cou ses in he a ea o
sus ainabili y and social en ep eneu ship. His esea ch ocus lies a he in e sec ion o
sus ainabili y, public policy, mine al esou ce go e nance, and he heo y o p ope y
igh s and ins i u ions.
Vinay Jaju comple ed his pos -g adua ion in business managemen om SPJIMR a e
g adua ing om S . Xa ie ’s College, Kolka a. A p oponen o Clima e Ac ion, Vinay
is he Managing Di ec o o Swi chON Founda ion, a eam o o e 100 p o essionals
dedica ed o En i onmen Sus ainabili y and Equal Oppo uni ies. Vinay leads he
eam on Clean Ene gy Access, Sus ainable Ag icul u e, Skill-based Educa ion, and
Well-being.
Munna Jha has 14 yea s o expe ience in media and communica ions in a eas anging
om clean ene gy, ene gy access, ai pollu ion, displacemen , gende , and igh s o
indigenous people and ma ginalised communi ies. He holds a bachelo ’s deg ee in
x i Con ibu o s
Poli ical Science om Kolhan Uni e si y and a diploma in Mass Communica ion and
Jou nalism om Punjab Technical Uni e si y, India.
Abhina Jindal holds a PhD in Economics om IIM Indo e and wo ks as a senio acul y
wi h NTPC-Powe Managemen Ins i u e, Noida, India. He has nea ly wo decades o
expe ience in he Indian powe sec o . His esea ch is ocused on issues a he in e ace
o economics, sus ainable inance, ene gy, and he en i onmen .
Madhu a Joshi has o e a decade’s expe ience wo king in ene gy and clima e policy in
India and he egion. He a eas o expe ise include ene gy go e nance and diplomacy,
poli ical economy o ene gy ansi ions, and co-bene i s o low ca bon de elopmen
among o he s. Cu en ly, Madhu a is Senio Associa e and India Ene gy T ansi ion
Lead wi h E3G, an in e na ional clima e hink ank.
Neha Khanna is Manage a Clima e Policy Ini ia i e’s Delhi o ice. She is a clima e
expe specialising in isk managemen and inancial inclusion. He wo k ocuses on
g een and sus ainable inance, ESG, and esponsible and inclusi e inance. P io o
CPI, Neha wo ked a In ellecap, Accen u e, and he managemen consul ing a m o
ICRA Ra ings.
Saa hak Khu ana is Manage a CPI’s Delhi o ice, whe e his wo k ocuses on echno-
economic solu ions and policy mechanisms o d i e deca bonisa ion. Wi h a s ong
backg ound and o e a decade o expe ience in he ene gy sec o , his expe ise lies in
ene gy ansi ion, e-mobili y, powe ma ke e o ms, c oss-bo de ene gy ade, and
co po a e s a egy.
Neha Kuma is cu en ly he Head o Sou h Asia P og amme, a Clima e Bonds Ini ia i e.
She has mo e han 14 yea s o expe ience wo king on public policy and indus y
ac ion in India on sus ainabili y and esponsible inancing. She was esponsible o
concep ualising and o e seeing success ul Indo-Ge man public–p i a e alliances, EU
co- inancing g an s, and mains eaming sus ainabili y p ac ices in la ge and small
businesses.
Julia Logino a is Resea ch Fellow a he Cen e o Social Responsibili y in Mining
(CSRM), Sus ainable Mine als Ins i u e, he Uni e si y o Queensland, Aus alia. Julia
is Human and Economic Geog aphe . Julia’s esea ch ocuses on global alue chains,
go e nance and socio-economic edis ibu ions, and communi y pa icipa ion and
consul a ion in he con ex o coal phase-ou and mine als mining.
Adi ya Lolla is Senio Policy Analys wi h Embe , who leads i s esea ch and policy
ad ocacy wo k in Sou h Asia. His key ocus a eas include iden i ying iable pa hways
o clean elec ici y sec o s in he egion, ede ining he ole o ossil uels in elec ici y
ansi ion and engende ing egional coope a ion on clean elec ici y ansi ion.
Shubh Majumda is cu en ly pu suing a doc o al deg ee in Gene al Managemen a
he Indian Ins i u e o Managemen in Ranchi, India. His esea ch in e es includes
Gene al Managemen , S a egy, and Ene gy T ansi ion- ela ed opics. His ecen
esea ch has been published in Ru ge s Business Re iew jou nal.
Piyali Majumde is Associa e Fellow a NCAER. She has wo ked a se e al eaching and
esea ch ins i u ions, p ominen ones being IIT Delhi, S Xa ie ’s Uni e si y, Kolka a,
and ICRIER. She comple ed he PhD and MPhil om Jawaha lal Neh u Uni e si y.
Con ibu o s x ii
He a eas o in e es a e In e na ional T ade, En i onmen al Economics, Indus ial
O ganiza ion, and Spa ial Econome ics.
Sabuj Kuma Mandal is Associa e P o esso o Economics a he Depa men o
Humani ies and Social Sciences, IIT Mad as. His eaching and esea ch in e es s
include Ene gy and En i onmen al Economics, Adap a ion o Clima e Change, and
En i onmen al Regula ion and Fi m Pe o mance. He was awa ded Fulb igh Neh u
Academic and P o essional Excellence Awa d 2020–2021 o conduc ing esea ch in
he a ea o Communi y-Based Adap a ion o Clima e Change.
Ti hanka Mandal has nea ly 15 yea s o expe ience wo king a he in e ace o ene gy,
de elopmen , and clima e change. His in e es s lie in unde s anding he e olu ion
o ins i u ional ela ionships be ween di e en en i ies o ede al go e nmen s and
s a e go e nmen s as well as changing ole o public inances in he con ex o clima e
change ac i ism and he high enewable ene gy scena io.
M i iunjoy Mohan y is a membe o he Economics acul y a he Indian Ins i u e o
Managemen Calcu a. Ou side o uni e si ies and business schools in India, he has
also augh and lec u ed in Mexico and Canada. His a eas o esea ch in e es a e
g ow h and s uc u al change, open economy mac oeconomics, compa a i e g ow h
expe ience, and he poli ical economy o g ow h. His cu en a ea o esea ch is he
na u e and pa e n o India’s in eg a ion in o he global economy in a compa a i e
amewo k.
Soumya P akash Nayak is wo king cu en ly a he Powe Founda ion o India, an au on-
omous Socie y unde he Minis y o Powe , Go e nmen o India. In his p o essional
jou ney he has been an ene gy sec o p o essional wi h o e 10 yea s o expe ience
in Resea ch & Analysis, O ganising Ene gy Dialogues & S akeholde ’s Consul a ion
Mee ings & Conduc ing S udies.
Ragha Pachou i has o e 11 yea s o expe ience in he Indian powe sec o . Du ing he
cou se o his ca ee , he has wo ked o Reliance Powe and The Ene gy and Resou ces
Ins i u e (TERI). The cu en ocus o his wo k is ene gy and powe sec o modelling,
especially aimed a enewable ene gy in eg a ion and deca bonisa ion o he Indian
powe sec o .
Jahna i G. Pai has o e 15 yea s o expe ience wo king wi h bo h go e nmen and non-
go e nmen en i onmen al o ganisa ions in India. He esea ch in e es s lie in he
in e sec ions o ecology, li elihoods, deg ow h, and gende . She cu en ly wo ks wi h
Asa Social Impac Ad iso s P L d. as a esea ch consul an .
Dh uba Pu kayas ha is he India Di ec o o Clima e Policy Ini ia i e (CPI) and he
Di ec o o US-India Clean Ene gy Finance (USICEF), o which CPI se es as he
P og am Manage . Dh uba comes wi h o e 20 yea s o expe ience and his expe ise
lies in managemen consul ing, in es men banking, c edi a ing, and in e na ional
de elopmen inancing in Asian coun ies.
Swas i Raizada is Policy Ad iso a he In e na ional Ins i u e o Sus ainable De elopmen
(IISD). He expe ience lies in policy ad iso y, public inance, and go e nmen a ai s
o ene gy. P io o joining IISD, she was wi h Deloi e Consul ing’s Ene gy and
Resou ces p ac ice whe e she led engagemen s on p e- easibili y s udies o sola PV
and ba e y s o age, ene gy access, and a i design.
x iii Con ibu o s
Abhishek Raj is a inance p o essional u ned policy esea che . His wo k e ol es a ound
de eloping solu ions ha minimise India’s dependence on ossil uels and accele a e he
ansi ion owa ds a ze o-ca bon elec ici y sys em and analysing he cu en s a e and
p epa edness o Indian Financial Ins i u ions owa ds clima e isk and oppo uni ies.
Saon Ray is an economis specialising in indus y and in e na ional ade issues, and he
a eas o in e es include global alue chains, echnological upg ading o Indian indus-
ies, ee ade ag eemen s and ade c ea ion e ec s, echnology ans e , o eign
di ec in es men inancial inclusion, ene gy, and clima e change– ela ed issues. She
has published widely on hese issues in books and jou nals.
A nab Sa ka is an analys a CPI’s Delhi o ice, whe e he ocuses on ene gy ansi-
ion and deca bonisa ion o he elec ici y sys em. His key esponsibili ies include
es ablishing c edible solu ions and policies needed o add ess c i ical issues ela ed o
ene gy ansi ion in India. He comes wi h ou yea s o ich expe ience in he ene gy
and powe space.
Runa Sa ka is P o esso wi h he Economics G oup, Coo dina o o he Cen e o
De elopmen and En i onmen Policy, and was Facul y Membe on he Boa d a he
Indian Ins i u e o Managemen Calcu a. He in e es s lie in sus ainable de elopmen
whe e business in e es s a e in consonance wi h en i onmen al and social in e es s.
She is on he boa ds o Bandhan Financial Holdings L d and Basix Consul ing and
Technology Se ices L d. Runa is a membe o he ju y o he S eelie awa ds in sus-
ainabili y by he Wo ld S eel Associa ion and he CII Ne Ze o Council.
T inayani Sen is a de elopmen sec o p o essional wi h a backg ound in economics and
public policy. He p o essional expe ience spans he nexus o ene gy, en i onmen ,
and li elihoods. She is cu en ly a pa o he Elec ic Mobili y eam a WRI India,
whe e she is engaged as Senio P og am Associa e.
Vigya Sha ma is Senio Resea ch Fellow a he Cen e o Social Responsibili y in Mining
(CSRM), Sus ainable Mine als Ins i u e, he Uni e si y o Queensland, Aus alia. In
he cu en ole, she is leading he Cen e’s wo k on ossil uel ansi ions, pa icula ly
looking a he social, poli ical, and economic impac s o la ge-scale coal ansi ions in
se e al geog aphies, including India, China, and Aus alia.
Gi eesh Sh imali is wi h he Uni e si y o Ox o d’s Smi h School o En e p ise and
he En i onmen (SSEE) whe e he is he Head o T ansi ion Finance Resea ch a
he School’s Ox o d Sus ainable Finance G oup. His esea ch ocus is on enewable
ene gy inance and policy, on he ca aly ic ole o inance in ge ing o ne ze o, and on
pa hways o he p o ision o low-cos , long- e m capi al o clean ene gy ansi ion.
He holds a PhD om S an o d Uni e si y, an MS om he Uni e si y o Minneso a,
and a BTech om IIT Delhi.
Rajsh i Shukla is a PhD candida e in Sociology a he Depa men o Humani ies and
Social Sciences, Indian Ins i u e o Technology Kanpu , India. Fo he doc o al hesis,
she is wo king on he ene gy jus ice implica ions o la ge-scale enewables in India.
He esea ch in e es s include clima e and ene gy policy, ene gy jus ice, and Jus
T ansi ion.
Sa hak Shukla holds a pos g adua e deg ee in Regula o y Go e nance om Ta a
Ins i u e o Social Sciences, Mumbai. He has he expe ience o wo king in he a eas o
Con ibu o s xix
clima e inance, ene gy ansi ion, s akeholde engagemen , and sys ems hinking. He
is wo king as Policy O ice – Ene gy T ansi ion, a Vasudha Founda ion.
Aanandi a Sikka is Analys a Clima e Policy Ini ia i e’s (CPI) Delhi o ice. He wo k
ocuses on g een and sus ainable inance. He expe ise lies in u ban sus ainabili y,
public policy, and egula ion. P io o CPI, she wo ked a A hena In onomics in he
wa e and sani a ion sec o in Sou h Asia and A ica.
Vaibha P a ap Singh is a clima e inance p o essional wo king on designing and de el-
oping inancial ins umen s. He has a p o en ack eco d in analysing in es men
oppo uni ies, de eloping inancial s a egies, and d i ing sus ainable g ow h. He is
passiona e abou le e aging inance as a ca alys o clean ene gy ansi ion and en i-
onmen al sus ainabili y.
Nandikesh Si alingam has o e 15 yea s o expe ience wo king o non-p o i s on di e se
issues. He is one o he ounde s o he Cen e o Resea ch on Ene gy and Clean Ai
(CREA), which ocuses on e ealing he ends, causes, and heal h impac s, as well as
he solu ions o ai pollu ion h ough da a-d i en esea ch.
Rishikesh S eeha i holds a pos g adua e deg ee in Renewable Ene gy and Dis ibu ed
Gene a ion om He io -Wa Uni e si y, UK. He has wo ked p e iously on unique
hyb id powe gene a ion ne wo ks ha gi e u al communi ies 24 × 7 access o low-
cos , g id-compa ible ene gy. His a eas o in e es include enewable ene gy in eg a-
ion, dis ibu ed enewable ene gy, and clima e policy.
Shan anu S i as a a, an ene gy inance analys a IEEFA India, specialises in inancing,
policy, and echnology ma e s o he Indian elec ici y ma ke . He has pas expe ience
in co po a e inance and s a egy consul ing. A CFA cha e holde , he has an MBA
in inance om IMT and an enginee ing deg ee om NMIMS Uni e si y, Mumbai.
Ha i Subbish Kuma Sub amanian’s a eas o in e es a e enewable ene gy and ene gy
ansi ion. He is cu en ly an ene gy ansi ion esea che a Asa Social Impac
Ad iso s P L d. He holds Mas e ’s deg ee in Sus ainable Ene gy Technology om
he Technical Uni e si y o Eindho en. Ha i is he co- ounde o B ineys, a s a -
up ha ocuses on inno a i e and sus ainable means o add essing d inking wa e
sca ci y.
Naini Swami is wo king as Resea ch Associa e a he Cen e o Ene gy, En i onmen ,
and People (CEEP). In he wo k a CEEP, Naini has ocused on land and labou
go e nance issues in Rajas han’s ene gy ansi ion. The key issues she has wo ked
on include decommissioning he mal powe plan s and he local impac o enewable
ene gy expansion.
P adip Swa naka is P o esso o Sociology a he Depa men o Humani ies and Social
Sciences, Indian Ins i u e o Technology Kanpu , India. He has been Adjunc Fellow a
he Uni e si y o Technology Sydney, Aus alia, and a isi ing schola a he Uni e si y
o San F ancisco, Uni e si y o Helsinki, and Helmhol z Cen e o En i onmen al
Resea ch GmbH-UFZ.
Tanmay Takle is a s uden in he Clima e School a Columbia Uni e si y, New Yo k.
P e iously, he was he Policy Ad iso o he Minis e o En i onmen & Clima e
Change o he Go e nmen o Maha ash a. In ha ole, he suppo ed he hen-minis e

xx Con ibu o s
on clima e policy, esea ch, p og amme s a egy, and communica ions and led s ake-
holde engagemen s as well as s a egic planning and pa ne ships.
Su anjali Tandon is Assis an P o esso a he Na ional Ins i u e o Public Finance
(NIPFP) and Policy and Visi ing Senio Fellow a G an ham Resea ch Ins i u e, LSE.
She cu en ly leads NIPFP’s wo k on sus ainable inance and di ec axa ion.
Shubham Thaka e is a Public Policy P o essional and has ex ensi ely wo ked as an
Ene gy Modelle o he pas ou yea s. His expe ience has been cen ed on de elop-
ing ene gy sys em models assessing deca bonisa ion o powe and hea y indus ies in
India. He has wo ked on India’s high-scale enewable ene gy in eg a ion and assessed
i s associa ed challenges.
Vasundha a Thaku is a doc o al candida e a he Kiel Ins i u e o he Wo ld Economy
and Biele eld Uni e si y. P io o his, she wo ked as a Resea ch Associa e a he Indian
Council o Resea ch on In e na ional Economic Rela ions. He wo k spans he a eas
o in e na ional ade, in es men , and inance. She holds a mas e ’s and bachelo 's
deg ee in Economics.
Sau abh T i edi is a esea ch analys wi h IEEFA. His ocus is on analysing global in es -
men lows in o clean ene gy and ossil uel sec o s wi h speci ic a en ion o deb
in es men . He also analyses he ole o inno a i e sus ainable inance in es men s in
ansi ioning Indian ossil uel companies o clean ene gy. Sau abh is cu en ly a ull-
ime indus y PhD s uden a Macqua ie Uni e si y.
Su esh Vee a agha an is a human igh s lawye wi h o e 35 yea s o cou oom expe-
ience in he Mad as High Cou and Sup eme Cou . D . Su esh is he Na ional
Gene al Sec e a y o he People’s Union o Ci il Libe ies (PUCL) and he Founde
and Di ec o o he “Ba e oo Academy o Go e nance.” He has wo ked ex ensi ely
on ‘ins i u ional ans o ma ion’ in Tamil Nadu, Odisha, Nagaland, Pondiche y,
Himachal P adesh, and o he s.
Balasub amanian Viswana han is an Ene gy Analys a Sus ainable Ene gy o All based
ou o Vienna, Aus ia. P e iously, he wo ked wi h he In e na ional Ins i u e o
Sus ainable De elopmen ’s Ene gy p og amme. He engages in da a collec ion and
analysis, s akeholde consul a ions, policy e iew, p ojec managemen , and commu-
nica ion on issues ela ed o a clean ene gy ansi ion. Bala holds a bachelo ’s deg ee in
mechanical enginee ing om BITS Pilani (India) and a mas e ’s deg ee in sus ainable
ene gy enginee ing om KTH Royal Ins i u e o Technology (Sweden).
Es ablished in 1998 as an in e disciplina y pla o m, he Cen e o De elopmen and
En i onmen Policy (CDEP) a IIM Calcu a has a manda e o add essing, h ough
esea ch, eaching as well as aining, he complex ela ionship be ween economic
ac i i ies and he na u al en i onmen . When a new commi ee ook o e he ac i i-
ies o he Cen e in July 2021, i decided o choose ene gy ansi ion as a ocus a ea
o i s ac i i ies. Coinciden ally, a ound he same ime, M Suman Sinha, Chai man
and CEO o Renew Powe , and hen, a boa d membe o IIM Calcu a, in oduced
CDEP o M Ka ikeya Singh o he S ich ing SED Fund (now wi h Global Ene gy
Fu u es Ini ia i e), wi h he idea o connec ing academia o ci il socie y o ganisa ions
wo king in his a ea. Soon, CDEP was alking o o ganisa ions such as In e na ional
Ins i u e o Sus ainable De elopmen (IISD), Ins i u e o Ene gy Economics and
Financial Analysis (IEEFA), and Clima e Policy Ini ia i e (CPI), and he Building
Roadmaps o Indus ial Deca bonisa ion and G een Economy (BRIDGE) ini ia i e
ook shape.
The BRIDGE ini ia i e aims o c ea e knowledge and knowledge bases on how o
accomplish an e ec i e and jus ca bon ansi ion h ough de eloping a ne wo k o
p o essionals wo king in he a ea o low ca bon ansi ion inancing and s a egy and
dissemina e he new knowledge on how public and p i a e ene gy i ms can adap o
ene gy ansi ion h ough open-sou ce ne wo ks. Fu he , i in ends o de elop policy
ad iso ies o ocus a en ion owa ds jus ca bon ansi ion o business using non-
pa isan analysis and esea ch o discussion on his b oad econo-socio- echnical issue.
In addi ion, i endea ou s o build awa eness, and ain execu i es o public and p i-
a e ene gy i ms in e ol ing bes p ac ices on ansi ion in India and o he de eloping
na ions as well as pos g adua e and doc o al s uden s on low ca bon ansi ion inance
and s a egy.
This olume i led The Role o Coal in a Sus ainable Ene gy Mix o India: A Wide-
angle View is one o he many ou comes o he BRIDGE ini ia i e. While i s indings ha e
a clea policy o ien a ion and will, hope ully, in o m policymake s in he go e nmen and
decision make s in he co po a e wo k wo ld, he p ima y objec i e o his edi ed book
is o o mula e a esea ch agenda o de eloping pa hways owa ds ansi ion o low ca -
bon economy and c ea ing knowledge suppo sys ems o enable a Jus T ansi ion. We
hope, he e o e, ha his olume will be a one-s op shop o anyone looking o ex an
and e ol ing knowledge, bo h in e ms o heo y and i s applica ions, ela ed o ansi-
ion o low ca bon o he coal- i ed powe indus y in India.
The jou ney owa ds b inging oge he his manusc ip began a ound he end
o 2021 o e se e al online mee ings wi h esea che s and p ac i ione s om CPI,
P e ace and Acknowledgemen s
xxii P e ace and Acknowledgemen s
IEEFA, and IISD along wi h membe s o he CDEP commi ee. A e se e al delib-
e a ions, we ze oed in on coal, he powe sec o , and India as he hemes o he
i s olume. O e nume ous mee ings, online and, in pe son, an edi o ial commi -
ee comp ising Ch is ophe Bea on, Dh uba Pu kayas ha, M i iunjoy Mohan y, and
Runa Sa ka wo ked oge he o iden i y po en ial con ibu o s. This was ollowed
by a wo-day wo kshop in May 2022 a he IIM Calcu a campus, a ended by mo e
han 30 esea che s and policy p ac i ione s om a ied disciplines like Economics,
Finance, Poli ical Science, En i onmen S udies, and Clima e Change o b ain-
s o ming and o mula ing ideas. The impo ance o a dialogue be ween esea ch and
policy h ough implemen able solu ions, aking in o accoun no jus he echno-
economic in e es s bu also he socio-economic conside a ions, gi en he exis ence
o a la ge in o mal economy and labou ma ke in India was he key akeaway om
he delibe a ions.
The edi o ial commi ee hen wo ked oge he in inalising he i le o he olume and
selec ing and ca ego ising he con ibu ions and a i ing a he p elimina y s uc u e.
The con ibu ions wen h ough a i s ound o pee e iew, ollowed by a w i e/wo k-
shop a IIM Calcu a in Decembe 2022 o enable con e sa ions ac oss con ibu ions
while wea ing hem oge he . Fo y delega es om 24 ins i u es a ended he w i eshop.
M i iunjoy Mohan y and Runa Sa ka hen ook o e he mo e hands-on edi o ial asks,
including connec ing wi h Rou ledge o he publica ion o he olume.
Now ha we a e a he las miles one o his jou ney ha commenced o e a yea
and a hal ago, we look back and ealise ha none o his would ha e been possible i
he hen Di ec o -in-cha ge P o . Subi Bha acha ya, had no connec ed CDEP wi h M
Suman Sinha and M Ka ikeya Singh. This olume is he ou come o hei ision and
suppo . The guiding ole played by M Ch is ophe Bea on, D Dh uba Pu kayas ha,
Ms Vibhu i Ga g, and M Balasub amanian Viswana han has been exempla y. Suppo
om he S ich ing SED Fund, speci ically om M Vikas Meh a, Ms Milag os Falus, Ms
Shaily Jha, and M Sai Siddha h is deeply acknowledged. We a e g a e ul o ou doc-
o al s uden s, A unika Mish a, Sh eyasee Das, Samhi a Kasibha a, Himad i Shekha
Chak aba y, Ra i Sa pu e, Manha Manchanda, and Aiman Nida, who appo eu ed
o he wo b ains o ming wo kshops held a IIM Calcu a.
The uns in ed suppo o IIM Calcu a’s Di ec o , P o . U am Kuma Sa ka , ac-
ul y, and s a has ensu ed ha his olume has seen he ligh o day. We wish o place
on eco d ou g a i ude o P o . K ishanu Rakshi , and membe s o he CDEP commi -
ee, namely, P o . Bhaska Chak aba i and P o . Manish Thaku , P o Suman a Basu,
P o Kaushik Roy, P o . Randhi Kuma , and P o . A nab Bha acha ya, who wo king
as a eam, con ibu ed o di e en aspec s o BRIDGE and bo om lined bo h he wo k-
shops. P a hamesh Mokal and Swa hy Swamina han ha e spen eno mous ime and e o
behind he scenes, pu ing oge he his olume wi h 21 chap e s, 5 boxes, 11 appendices
and 57 con ibu o s, including pu ing up wi h wo can anke ous edi o s. A big hank
you o hem!
The eam a Rou ledge has had o be e y pa ien and pu up wi h innume able changes
and pos ponemen s. Ms Shoma Choudhu y was an en husias ic suppo e o ou p ojec
om he e y i s ime we men ioned i o he . The pains aking and ca e ul copyedi ing
wo k o M Sanjee i Naga ajan and his eam was in aluable and has added o he ol-
ume’s eadabili y and cla i y. We emain indeb ed o hem.
Finally, we canno hank enough, e e y wo kshop and w i eshop a endee and con-
ibu o s o his olume. In e ac ions wi h each one o you ha e en iched us in my iad
P e ace and Acknowledgemen s xxiii
ways and we ha e been humbled by he suppo ecei ed om all o you o ensu e ha
his olume ac ually sees he ligh o day. Tha oday he e is a ne wo k o academics and
policy p ac i ione s wo king oge he and sha ing ideas a he on ie s o clima e change
is pe haps he bigges gi o his olume.
M i iunjoy Mohan y and Runa Sa ka
xxx Abb e ia ions
SDP S a e Domes ic P oduc
SDS Sus ainable De elopmen Scena io
SEB S a e Elec ici y Boa d
SEBI Secu i ies and Exchange Boa d o India
SECI Sola Ene gy Co po a ion o India
SECL Sou h Eas e n Coal Field Limi ed
SERC S a e Elec ici y Regula o y Commissions
SEZ Special Economic Zone
SHG Sel Help G oup
SIDBI Small Indus ial De elopmen Bank o India
SIP Sys ema ic In es men Planning
SJRP Sec o Jobs Resilience Plan
SLB Sus ainabili y-Linked Bond
SLF Sus ainabili y-Linked Finance
SLGB Sus ainabili y-Linked G een Bond
SLNP S ee Ligh ing Na ional P og amme
SMES Supe conduc ing Magne ic Ene gy S o age
SOE S a e-Owned En e p ises
SPTs Sus ainabili y Pe o mance Ta ge s
SPVs Special Pu pose Vehicles
ST&D Sub-T ansmission & Dis ibu ion
STEPS S a ed Policies Scena io
SWM Solid Was e Managemen
SynCON Synch onous Condense
TERI The Ene gy and Resou ces Ins i u e
TES The mal Ene gy S o age
TISCO Ta a I on and S eel Company
TOR Te ms o Re e ences
TPI T ansi ion Pa hway Ini ia i e
TPP The mal Powe Plan s
TWh Te awa Hou
UDAY Ujjwal Discom Assu ance Yojana
UJALA Unna Jyo i By A o dable Led Fo All
ULIP Uni -Linked In es men Plans
UN SDGs Uni ed Na ions Sus ainable De elopmen Goals
UNEP Uni ed Na ions En i onmen P og amme
UNFCCC Uni ed Na ions F amewo k Con en ion On Clima e Change
UNIDO Uni ed Na ions Indus ial De elopmen O ganiza ion
UT Union Te i o y
VPPA Vi ual Powe Pu chase Ag eemen
VRE Va iable RE
WCL Wes e n Coal ield Limi ed

Con ex
Tha clima e change, wi h all i s dele e ious e ec s, is upon us is an undispu ed u h.
I is also accep ed uni e sally ha he impac o clima e change will be much ha she
on he global sou h a he han he global no h. Speci ically, i will be ha sh on India,
gi en i s pe capi a income le el, i s geog aphical la i udinal loca ion, he long coas -
line o peninsula India, he moun ain anges o he Hindu Kush, and he Himalayas
aming Sou h Asia’s no he n bo de s. The accumula ion o CO2 and CO2 equi alen
gases in he ea h’s a mosphe e is belie ed o be esponsible o he g adual inc ease in
global empe a u es which ha e led o clima e change. One o he indispu able ways o
mi iga e he impac o clima e change is, he e o e, o educe he amoun o CO2 and
CO2-equi alen gases emi ed in o he ea h’s a mosphe e. The bu ning o ossil uels,
which a e essen ially ossilised ca bon sinks o med o e millennia, is a p ima y sou ce
o CO2. As a esul , he deca bonisa ion o he ene gy sec o has been gaining inc eased
a en ion ecen ly, as is e iden in he ecen Con e ence o Pa ies (COP) mee ings ac oss
he wo ld, wi h coun ies making ne -ze o commi men s wi h espec o CO2 emissions
and upda ing Na ionally De e mined Con ibu ions (NDCs) made o he Uni ed Na ions
F amewo k Con en ion on Clima e Change (UNFCCC).
India, gi en i s as popula ion and i s cu en ajec o y, will be one o he engines
o global g ow h o he nex ew decades. In gene al, economic g ow h is p opelled by
a g ea e use o ene gy. This is e en mo e ue o India whe e one o he objec i es o
economic g ow h is o p o ide access o (elec ical) ene gy o a as popula ion ha s ill
does no ha e i while making elec ici y a o dable o all. The la ges sou ce o elec ic-
i y gene a ion in India is he bu ning o coal as i is a ailable easily, and, a guably, he
cheapes way o gene a e elec ici y as o da e. A he same ime, India, being he ou h-
la ges emi e o GHGs in he wo ld (howe e , 140 h in pe capi a emissions e ms),
ecognises ha i s in ol emen in he global deca bonisa ion e o will be c ucial as he
majo economies o he wo ld mo e owa ds ne -ze o emissions a ge s by he middle o
he wen y- i s cen u y. Mo e impo an ly, g een echnologies can also be an al e na e
ou e o economic g ow h, de elopmen , and job c ea ion as hey become mo e a o d-
able and e ec i e.
While i is commonly acknowledged ha he mos ob ious way o achie e deca boni-
sa ion is he use o enewable ene gy, he complexi y o he in e dependencies be ween
he seconda y ene gy ca ie s and end-use ene gy sec o s canno be unde es ima ed. The
en i e economic sys em is locked in o ossil uel (speci ically coal)–based ene gy and
anspo a ion sys ems h ough pa h-dependen p ocesses d i en by he i e u able logic
In oduc ion
M i iunjoy Mohan y and Runa Sa ka
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-1
10.4324/9781003433088-1
2 M i iunjoy Mohan y and Runa Sa ka
In oduc ion
o inc easing e u ns o scale. These echnological sys ems, es ablished h ough a co-
e olu iona y p ocess among echnological in as uc u es, o ganisa ions, socie y, and
go e ning ins i u ions, c ea e a sense o s abili y, p edic abili y, and possibly eliabili y
in he sys em, he eby c ea ing ine ial esis ance when a change away om ossil uels
is conside ed. Mo eo e , hese sys ems suppo and nu u e he economic ac i i y, iden-
i y, and sus enance o a la ge ac ion o he popula ion o he coun y. The e o e, any
change mus also keep squa ely in ocus hei li elihoods and well-being. In addi ion,
he Uk aine wa has p io i ised ene gy secu i y as an a ea o a en ion o all coun ies
globally. In ha con ex , i is unde s andable ha India, wi h i s as esou ces o coal
and ample access o sola ene gy, would gi e g ea e weigh age o hese wo sou ces in
i s ene gy mix, while ying o balance sus ainabili y wi h ene gy secu i y. Ye , gi en he
w i ing on he wall, phasing down coal canno be igno ed.
A e iew o a ious go e nmen announcemen s, policies, oadmaps, a ge s, and sce-
na ios o ecas leads o he belie ha while he Indian go e nmen has se goals and
announced a ge s owa ds a low ca bon u u e, and made some p og ess in ha di ec-
ion, he e s ill emains a lack o cla i y on bo h he pa h(s) and he means o achie ing
hese. Al e na e pa hways o a low ca bon u u e o India would be a combina ion o
h ee gene ic policy app oaches which a e p og essi ely dis up i e o exis ing echno-
logical sys ems, namely ocus on end-o -pipe solu ions wi hou oo many changes o he
sou ce o ca bon emissions; modi y selec ed componen s o p ocesses o he sys em, bu
main ain he o e all sys em a chi ec u e, ha is, o i y he ossil uel–based backbone o
ene gy sys ems wi h inc emen al imp o emen s and e iciency based in e en ions; and
eplace he ene gy sys ems en i ely wi h al e na i e sou ces o ene gy such as enewables.
T ansi ion has o be sys emic, in ol ing people, echnology, and inance. Ensu ing
sus ainabili y in he ene gy mix is pa icula ly challenging when i is no di ec ly in con-
sonance wi h ene gy secu i y, a o dabili y, and access.
The e a e many pa hways o achie e India’s na ionally de e mined con ibu ion com-
mi men s, and he e has been a lo o esea ch and discussion on he ole o coal in
shaping hese pa hs. In ellec ual and policy con ibu ions on he s a e o ex an powe
ansmission and dis ibu ion companies on how o p ice and p omo e sola and wind
ene gy and on he conce ns o a jus ene gy ansi ion abound. Wha his olume seeks o
do is o employ a c oss-cu ing app oach o wea e oge he occasionally di e gen lines
o specialised hough in o a apes y ha demys i ies he challenges o and app oach
owa ds mo ing on o a mo e sus ainable ene gy pa h (mix) o India. I akes s ock o
he cu en knowledge in his a ea and iden i ies he esea ch gaps. I does no in end o
eplica e exis ing wo k bu has b ough oge he schola s and policy p ac i ione s wo k-
ing in he a ea o delibe a e on how o go o wa d and build on each o he ’s esea ch. I
has been success ul in b inging 57 esea che s, policy ad oca es, and p ac i ione s om
30 di e en ins i u ions o si ac oss he able and discuss hei pe spec i es and inally
pu hem oge he as con ibu ions o he olume.
Mos o he con ibu ions in his olume a e collabo a i e e o s o wo o mo e ins i-
u ions, demons a ing he specialised, ye in e disciplina y na u e o bo h he issue a
hand and hei own wo k. I is his c oss-cu ing, in e disciplina y, and plu al app oach
o con e sa ions a ound ene gy ansi ion which we hink di e en ia es his olume om
he many excellen o e ings a ailable in his a ea. We hope ha he olume will in o m
delibe a ions o he G20 as hey ocus on he deca bonisa ion challenges o he global
sou h and will be use ul o policymake s as hey idea e how o ashion India’s ansi ion
pa hway o mee i s ne -ze o goal by 2070.
In oduc ion 3
As clima e his o y ells us, ene gy ansi ions a e no new o India (o o he wo ld).
The mo e away om bio-mass as he p ima y sou ce o uel o coal and oil and gas was
a esul o demand-side echnologies ha imp o ed he quali y o human li e. The ansi-
ion om gas ligh s o elec i ica ion was also dis up i e and demand d i en. The cu en
ene gy ansi ion away om ossil uels is di e en o wo easons. Fi s , he ansi ion,
d i en by conce ns o e clima e change, will be d i en la gely by policy a he han pulled
by demand. The ole o policymake s could ensu e a mo e o de ly ansi ion, one whe e
he amp-down o high- CO2 emi ing asse s is ca e ully coo dina ed wi h he amp-up
o low- CO2 emi ing ones and which is suppo ed by he app op ia e edundancy and
esiliency measu es. Howe e , he e is a ea ha in he p ocess i could also decele a e
he p ocess esul ing in g a e economic damage om clima e change. Second, om he
e y beginning, bo h he no ion o and ocus on a Jus T ansi ion ha e been buil in o
he p ocess, which was lacking in any o he pas ene gy ansi ions. Ensu ing ha he
impac o he ene gy ansi ion on people, bo h di ec ly and indi ec ly associa ed wi h o
a ec ed by i , is conside ed and amelio a ed as pa o he ansi ion p ocess is one o he
undamen al p inciples ensh ined in any ene gy ansi ion policy ollowed oday. In ha
spi i , besides being c oss-cu ing and plu al, he o he de ining ea u e o he olume is
ha he concep o Jus T ansi ion uns as a common h ead h ough each o he ou
sec ions, a he han being add essed in an independen sec ion.
Chap e s
In he i s sec ion (A Mac oeconomic Analysis o Al e na e Pa hways) o he olume, in
Chap e 1 (India's coal and coal- i ed elec ici y needs by 2030) Dahiya e al p esen a
mac oeconomic analysis o he mul iple pa hways owa ds a sus ainable ene gy mix o
India and a gue ha India’s coal needs ha e been consis en ly o e es ima ed. A e an
analy ical assessmen o India’s ene gy needs and he a ailabili y o ex an coal o add ess
i , in Chap e 2 (India’s Ene gy T ilemma and Coal-based Powe Gene a ion) Basu and
Nayak add ess he challenges o he ilemma o ene gy access, a o dabili y, and secu i y
aced by India and i s impac on ansi ion choices. In Chap e 3 (Ene gy T ansi ion and
Cen e-S a e P io i ies) Ti hanka Mandal explo es he ole o ede alism and con e -
sa ions be ween cen al and s a e go e nmen s in ini ia ing and enabling he ansi ion,
i s mac oeconomic impac , and speci ically he social cos s in ol ed. Ray e al discuss
he mac oeconomic implica ions o a coal phase down in Chap e 4 (Mac oeconomic
Impac s o Coal T ansi ion). Sha ma and Logino a d aw on in e na ional expe ience
o unde s and he social cos s o a coal phase down in Chap e 5 (The social cos s o
India’s ene gy ansi ion). In Chap e 6 (Deep Elec i ica ion in India), which concludes
Sec ion 1, Shukla e al discuss he s a e o play wi h espec o deep elec i ica ion as a
complemen a y s a egy o be implemen ed alongside he mo emen away om ossil
uel–based ene gy.
The nex sec ion (Go e nance and Policy Pe spec i es) b ings oge he discussions
on ansi ion om a policy pe spec i e, bo h no ma i e and posi i e. G o e e al ake a
no ma i e iew in Chap e 7 (Go e nance P inciples o a Jus Ene gy T ansi ion) and
p opose b oad p inciples o a people-cen ed ansi ion wi hin India’s cons i u ional
amewo k and India’s de elopmen pa adigm. This is ollowed by Shukla and Pachau i’s
posi i e analysis in Chap e 8 (Policy F amewo k o Ene gy T ansi ion in India) o he
ex an policy landscape in e ms o i s objec i es, go e nance mechanisms, ools o egu-
la ion. Mohan y e al in Chap e 9 (Indus ial Policy 2.0) discuss he esu gence in he use
4 M i iunjoy Mohan y and Runa Sa ka
o indus ial policy in he con ex o new e idence abou i s e ec i eness bo h in e ms
o echnological ca ch-up, as well as echnological change, and i s key ole he e o e
in adap ing o clima e change. Joshi and Dsouza d aw on in e na ional expe ience o
ou line lessons o India in cha ing a jus ene gy ansi ion in Chap e 10 (In e na ional
Expe iences on Jus Ene gy T ansi ion Planning and lessons o India). The sec ion closes
wi h Chap e 11 (G ounded Pe spec i es on Ene gy T ansi ion) whe e Pai e al gi e us a
g ounded pe spec i e om Jha khand, a mine al- ich s a e o India, making a case o a
bo om-up app oach by including he oices o he local communi ies in his discou se.
Sys emic ansi ions will always c ea e oppo uni ies o some indus ies while p e-
sen ing challenging ci cums ances o o he s. Sec ion h ee (Indus y: Oppo uni ies and
Challenges) explo es some o hese. Gi en he size and impac o he coal- i ed powe
sec o in India, which will be a he ecei ing end o a coal phase-down, he i s h ee
chap e s o he sec ion analyse how o imp o e he e iciency o hese powe plan s and
hei e o i s and epu posing. Chap e 12 (Re o i deca bonisa ion and Reu iliza ion o
The mal Powe Plan s) opens his sec ion wi h an analysis by Bha acha jee and Sen on
he possibili ies o euse o esou ces o me ly used by decommissioned he mal plan s. In
Chap e 13 (Fu u e-p oo ing India’s coal PSUs) Khu ana e al assess di e si ica ion s a -
egies o wo o India’s la ges s a e-owned en e p ises, Coal India Limi ed and NTPC,
in e ms o hei u u e eadiness o con inue o domina e in he ene gy sec o whe e
coal may no be he mos p ominen uel. Sabuj Mandal ca ies ou a s a e le el analysis
o he mal powe plan s in e ms o hei ene gy e iciency in Chap e 14 (An e alua-
ion o ene gy and en i onmen al e iciency o he Indian The mal powe plan s). In
Chap e 15 (Ene gy s o age and i s po en ial ole in elec ici y ansi ion) Thaka e and
S eeha i explo e he ole o and oppo uni ies o he ene gy s o age indus y in a suc-
cess ul ansi ion o enewable ene gy use. Finally, he sec ion closes wi h Majumda
e al analysing in Chap e 16 (In e na ional Expe iences) expe iences and bes p ac ices
o o he la ge conglome a es om ac oss he wo ld bo h in ansi ioning away om coal
as well as enewable ene gy gene a ion.
Conce ns a ound he a ailabili y o inance a e a ecu en heme in almos all he
p e ious discussions, and he las sec ion (In es o s and Sha eholde s) add esses jus
ha . In Chap e 17 (Financing India’s 2030 NDC a ge s and beyond) he i s chap-
e o his sec ion, Singh and Kuma poin ou ha o he ou majo deb inancing
engines, domes ic banks, domes ic bond ma ke s, o eign ins i u ional unding, and
in e na ional g een bonds, only domes ic banks and in e na ional bonds a e esponsible
o he lows o unds o he ene gy ansi ion. So e eign weal h and pension unds
domina e he equi y side. In Chap e 18 (T ansi ion Finance) Sikka e al explo e inanc-
ing ansi ion echnologies om he pe spec i e o inancial ins i u ions, iden i ying he
lack o an enabling en i onmen , inno a i e inancial ins umen s, and a high cos o
capi al as inhibi ing lows. These challenges, and possible solu ions, a e hen explo ed
u he in he con ex o domes ic ins i u ional in es o s in Chap e 19 (Role o Domes ic
Ins i u ional Capi al in Funding India’s Ene gy T ansi ion) by Shan anu S i as a a. In
Chap e 20 (Ope a ionalising Jus T ansi ion in India) Kuma and Tandon ake a p ag-
ma ic app oach o managing and augmen ing public and p i a e inancial lows by map-
ping issues a ising om Jus T ansi ion, and i s impac ac oss he inancial sec o , i ms,
and people. The sec ion ends wi h Chap e 21 (In e na ional Clima e Financing and Jus
Ene gy T ansi ion) whe e Swa naka and Shukla explo e he po en ial o clima e inanc-
ing o deli e dis ibu i e and p ocedu al jus ice in he Jus T ansi ion p ocess.
Each sec ion also has i s own in oduc ion, in oducing chap e s con ained.
In oduc ion 5
Wha he Volume Does No Co e
When emba king on a ques on a subjec as ambi ious as he ole o coal in a sus ain-
able ene gy mix o India, i is o be expec ed ha he e would be many ma e s ha a e
ge mane o he a ea bu which may no ha e been adequa ely co e ed in his olume.
Gi en below is a lis ing o a ew impo an a eas, in ou unde s anding, which needs o
be deba ed and discussed as we cha ou a ansi ion pa h o a sus ainable ene gy u u e.
Fo example, while he e is some discussion on how la ge co po a e India is doing
i s bi , benchma ked wi h he companies om he es o he wo ld, he e is li le- o-no
discussion on wha is happening o he MSMEs o o he p o e bial missing middle o
India’s indus y. CDEP’s own in e ac ion wi h MSMEs sugges s ha his is no neces-
sa ily because hey a e unawa e o he challenges o lack in e es . MSMEs need o be
inco po a ed in o his discussion o wo di e en easons – i s , MSMEs con ibu e a
signi ican po ion o non-ag icul u al alue-added and he bulk o employmen , aising
he salience o hei success (o o he wise) in ansi ion; second, in adop ing ansi ion
pa hs, MSMEs will ha e e y di e en equi emen s and cons ain s as compa ed wi h
la ge co po a es, necessi a ing a di e en ins i u ional esponse. Fu he , we a e awa e
ha an e e -g ea e numbe o companies a e ecognizing how shi ing in es o p e e -
ences, as well as changes in echnology, egula ion, and consume beha iou s, a e chang-
ing he basis o compe i ion and a e calling o an al oge he g ea e le el o global
and local collabo a ion. We ha e been unable o del e in o hese aspec s in his olume,
al hough he e is a ich li e a u e a ailable in his a ea and se e al Indian i ms ha e
aken commendable s ides owa ds changing hei ene gy mix because o such d i e s.
Despi e signi ican declines in po e y le els as a esul o apid g ow h, in India,
a subs an ial p opo ion o he popula ion s ill li es below he po e y line. Using
he ex ended Tendulka po e y line and NSSO’s Employmen and Unemploymen
Su eys o 2011–2012 and 2019–2020 and making app op ia e adjus men s o ensu e
compa abili y, San osh Meh o a and Jaja i Pa ida es ima e ha in 2019–2020 India’s
headcoun po e y a io s ood a 20.8% (‘Poo Economics: Has India’s Po e y Really
Fallen?’ San osh Meh o a and Jaja i Pa ida, Financial Exp ess, 30.04.2022). Ideally,
o e he nex decade o so India has o g ow as enough no only o ensu e ha
his po e y is wiped ou bu also ha consump ion le els, which e en a e c ossing
he po e y line emain abysmally low, ise subs an ially. Tha is o say, a he lowe
deciles, consump ion should g ow as e han GDP, implying a decline in inequali y.
The implica ions o CO2 emissions o a g ow h pa h whe e consump ion inequal-
i y alls ha e no been add essed in his olume. Ideally wha we should aim o is a
decline in he ca bon in ensi y o consump ion e en as he consump ion le els o he
poo inc ease in bo h ela i e and absolu e e ms, allowing CO2 emissions o decline
e en as consump ion ises.
Ano he a ea ha has no been ouched upon a all in his olume is he linkages o a
ansi ion o a sus ainable ene gy mix o clima e change adap a ion measu es. Reliable
and a o dable enewable ene gy se ices could p o ide a ‘g eene in as uc u e’ o
he mos clima e- ulne able coun ies o sec o s. Speci ic adap a ion needs and po en-
ial enewables-based solu ions in wa e , ood, ag icul u e, and o es y; na u al disas e
esponse; oceans, coas s, and small islands; and human heal h, ha e been explo ed in a
global con ex , bu he e is oom o u he wo k con ex ualising his esea ch o India.
On a ela ed ma e , he e a e in e en ions on he demand side ha in ol e beha -
iou al changes o educe he ex en o consump ion o ene gy. Impo an as hese be,

6 M i iunjoy Mohan y and Runa Sa ka
his olume, howe e , does no delibe a e on demand-side ene gy managemen anging
om making mo e ene gy e icien equipmen o esponsible consume ism bu limi s i s
ocus o he supply side. Keeping he objec i e o aising consump ion le els in ac , he e
a e se e al ac ions ha can be aken o shape he “quali y o consump ion.” Ques ions
such as can o e all consump ion be deca bonised and how o educe inequali y o ene gy
in ensi y o consump ion ac oss di e en income deciles ha e no been add essed in he
olume. Discussions on o he CO2- eleasing ac i i ies such as land use and land use
change, o anspo , o o he indus y a e es ic ed o only ways in which he mal
powe plan s would be a ec ed by such ac i i ies.
India’s cu en sa ings–GDP a io is a ound 30–31%. Fo India’s GDP o g ow a a
sus ained a e o 7.5–8% (and assuming declining ca bon in ensi y o p oduc ion and
consump ion), an a e age in es men a io o a ound 35% and a sa ings a io o a ound
33% would be needed. This would imply an inc ease in he sa ings a io o abou 2–3%
om cu en le els. Assuming ha he inancial sa ings a io g ows in andem wi h he
g oss sa ings a io, his would imply an inc ease in household inancial sa ings as well
and he e o e inc easing in e media ion h ough he banking sys em, po en ially inc eas-
ing he le el o esou ces a ailable o inance deca bonisa ion s a egies and pa hways.
We eel adequa e a en ion has no been paid o his aspec in discussions a ound esou ce
mobilisa ion o deca bonisa ion.
The e is also e y li le discussion on wha is he app op ia e social discoun a e a
which we, collec i ely as a socie y, discoun he u u e. This is c i ical o in e -gene a-
ional equi y. The lowe he discoun a e, he mo e we ca e abou u u e gene a ions;
he highe he discoun a e he mo e we alue he cu en gene a ions. Fo example,
he Biden Adminis a ion used a social discoun a e o 2% o jus i y clean ene gy sub-
sidies g an ed unde he USA’s 2022 In la ion Reduc ion Ac (The obscu e calcula ion
ans o ming clima e policy, Ula Ch obak, 12.06.2022, Knowable Magazine). The social
discoun is a policy a iable, and i is impo an o ha e a anspa en deba e a ound i
because i will c i ically shape he ansi ion pa h we adop .
De ailed discussions on he p o e bial elephan in he oom – he dis ibu ion g id –
has been delibe a ely a oided. Del ing in o hese deba es could ill an en i e olume and,
equally impo an ly, we an he isk o losing ocus by ge ing los in he in icacies o
he challenges aced by dis ibu ion companies. The e is a lo o lea n om in e na ional
expe iences o ene gy ansi ion in Sou h A ica, he USA, and he EU, and only limi ed
examples ha e been ouched upon in he chap e s o simila easons.
Finally, and pe haps mos impo an ly, we ha e no de o ed enough discussion o he
inc easing cos s o delaying o slowing he pace o he ansi ion. While i is impo an o
ha e a delibe a ed ime ho izon o ansi ion, aking all s akeholde s in o accoun , i is
also impo an o s ess he need o ac and commi now o a deca bonisa ion pa h so as
o a oid an un elen ing accumula ion and compounding o physical isks in he u u e.
This would equi e a di e en ime ho izon and discoun a e om hose cu en ly guid-
ing decisions. Ac ions o secu e he ansi ion a e o en pe cei ed as cos s incu ed oday,
a he han in es men s in humani y’s collec i e u u e.
Taking he Discussion Fo wa d
The olume is an a emp o c ea e a knowledge base by pu ing oge he indings om
ex an li e a u e and p ac ices unde a common amewo k o acili a e collec i e e lec-
ion and wo k owa ds making he esea ch on deca bonisa ion in i s a ious dimensions
In oduc ion 7
mo e mains eam. Achie ing ne ze o is, in i s essence, sol ing an equa ion ha balances
sou ces and sinks o emissions by educing GHG emissions as much as possible while
inc easing GHG s o es o emo e any emaining emissions om he a mosphe e. This is
no a single equa ion bu a sys em o equa ions. The emissions equa ion is coupled wi h a
capi al and a labou equa ion. The demand o capi al and labou in a ne -ze o economy
mus ma ch wi h supply, o e ime and ac oss egions. And hese equa ions mus be
sol ed simul aneously o concu en ly while pu suing economic de elopmen and inclu-
si e g ow h. Mo eo e , a lo depends on wha is happening in he es o he wo ld.
Enable s o a i e a a sus ainable ene gy mix include echnological inno a ion ha
can be scaled up, c ea ion o suppo ing supply chains and in as uc u e, a ailabili y o
necessa y na u al esou ces, e ec i e capi al ealloca ion and inancing s uc u es, com-
pensa ing mechanisms o add ess socioeconomic impac s, go e ning s anda ds and e ec-
i e ins i u ions, poli ical commi men , and suppo om ci izens bo h as p oduce s and
as consume s.
As eminen his o ian Pe e F ankopan es ablishes in his ecen book on clima e his o y
(The Ea h T ans o med: An Un old His o y, 2023, Bloomsbu y and Knop ) ci ilisa ions
pas ha e aced bo h exogenous as well as man-made clima e shocks. Some adap ed while
some didn’ . The e a e lessons o be lea ned om he pas and, i we pu ou collec i e
ene gies in o i , we can success ully adap oo. Wha P o esso F ankopan’s wo k unde -
lines e y clea ly, howe e , is ha he e is no oom o complacency. Business as usual
is no an op ion. We hope his olume con ibu es owa ds aking he op ions o wa d.
As we examine he ole o coal in a sus ainable ene gy mix o India in he con ex o
a global push owa ds ansi ioning away om i , one has o ecognise he sys emic,
in e linked, and complex na u e o how coal is in e wined wi h he poli ical economy o
he coun y. In addi ion o powe ing he na ion, coal is he sou ce o di ec and indi ec
employmen o millions o people, esponsible o a huge con ibu ion o he public
inances o he coun y h ough ax and o he measu es and esponsible o being he
la ges cus ome segmen o c i ical anspo a ion in as uc u e. In addi ion, he need
o con inue o ocus on India’s g ow h canno be dispu ed. Hence, any discussion on
balancing he ene gy mix o he coun y away om coal mus i s ake a mac oeconomic
iew o he implica ions o such a change. The emi o his sec ion is o i s unde s and
he needs o India’s powe sec o , keeping in mind i s p io i ies, examine he implica ions
and necessi y o a ansi ion away om coal, and iden i y he changes equi ed o enable
a jus ene gy ansi ion.
The e a e ew disag eemen s o e he global impe a i e o a ansi ion o a cleane
ene gy mix o e ime. Howe e , he e a e di e gen iews on he pace and na u e o he
ansi ion o India, gi en he need o balance he need o economic g ow h which, his-
o ically, has been ca bon in ensi e, and deca bonisa ion s a egies. I is in his con ex
ha he con ibu ions in his sec ion iew India’s ansi ion pa hways. Thus, while an
assessmen o how accu a e India’s p ojec ed coal needs a e o he nea u u e is iewed
om a echnology lens, a mo e p agma ic app oach is aken o balance he na ional
p io i ies o equi able g ow h wi h India’s in e na ional commi men s o deca bonisa-
ion. A poli ical economy lens is hen used o si ua e he ene gy ansi ion wi hin India’s
ede al sys em, balancing cen al p io i ies wi h hose o indi idual s a es. F om a pu ely
economic iew poin , one mus be able o make a judgemen o he impac o a ansi ion
away om coal on mac oeconomic pa ame e s such as GDP, employmen , and public
inances. The spa ial impac o a ansi ion away om coal on ce ain geog aphies o he
coun y and he une en manne in which di e en s a a o socie y would ge a ec ed
also has o be add essed. A Jus T ansi ion, ha espec s social iden i y and digni y, is
he only humane way o ini ia ing a ec onic change in he ene gy mix o he coun y.
The ansi ion would be incomple e i i was no concomi an wi h a deep elec i ica ion
o all he sec o s o he Indian economy, and his aspec is conside ed in he las chap e
o his sec ion.
In he i s chap e , Dahiya, Lolla, Gup a, and Si alingam clea he haze o e India’s
p ojec ed ene gy equi emen s ill 2030 o a i e a a ealis ic assessmen o India’s need
o mine addi ional coal. The au ho s demons a e ha India’s elec ici y demand has, o
Pa 1
A Mac oeconomic Analysis o
Al e na e Pa hways: an In oduc ion
M i iunjoy Mohan y and Runa Sa ka
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-2
10.4324/9781003433088-2
16 Sunil Dahiya e al.
This u he subs an ia es ecen s udies which ha e shown ha i India deli e s on
i s RE a ge s, i s coal- i ed gene a ion will likely peak by he end o his decade (CREA,
2021), (EMBER, 2021a), (IEEFA, 2021).
The es ima ed le el o coal- i ed gene a ion in FY 2030 would mean ha India may no
e en need o build any mo e coal powe capaci y beyond wha is al eady unde cons uc-
ion, e en a e he planned e i emen o olde uni s. India cu en ly has an ope a ing g id-
connec ed coal lee o 211 GW, which is al eady unning a a low plan load ac o (PLF)
o 54% (in FY 2022). Fu he , India’s o e all coal powe PLF has been alling yea -on-yea
in he las decade (70% in FY 2012 o 54% in FY 2022) (MOP, 2022). This is unlikely
o signi ican ly imp o e in he u u e oo as India has abou 27 GW o new coal powe
plan s unde di e en s ages o cons uc ion (CEA, 2022c), which is mo e han enough o
mee he addi ional coal- i ed gene a ion expec ed by he end o his decade. Wha is clea
is ha India is building new coal powe capaci y only o ensu e i has su icien capac-
i y o mee peak (ins an aneous) demand and any new capaci y addi ion o e he cu en
le el wouldn’ change he o e all coal- i ed gene a ion and coal equi emen by FY 2030.
Inc easingly, s udies a e showing ha a be e way o plan o peak demand o a ew hou s
a day would be o in es in a ious RE and s o age op ions and g id mode nisa ion p o id-
ing mo e lexibili y and be e u ilisa ion o inc easing RE capaci y (EMBER, 2021b).
Implica ions o he Coal Mining Indus y
India’s coal- i ed gene a ion in FY 2030 o di e en scena ios o a e age annual demand
g ow h a es o 4.5%, 5%, 5.5%, and 6% om FY 2022, would be 1017 TWh, 1099
TWh, 1185 TWh, and 1273 TWh, espec i ely. The abo e p ojec ions o 2030, assum-
ing 0.65 kg/kWh speci ic coal consump ion wi h 1% loss du ing anspo a ion, would
ansla e in o app oxima ely 668 MT, 722 MT, 778 MT, and 836 MT o coal equi e-
men o powe gene a ion, espec i ely.
Con a y o his, Coal India Limi ed’s (CIL) d a Coal Vision 2030 in 2018 p edic ed
a minimum he mal coal demand o 1150 MT i 85% (977 MT, based on pas ends) o
i is assumed o be consumed o elec ici y gene a ion. Tha would ansla e o g ea e
han 1500 BUs (much highe han he mos conse a i e es ima e o 1248 BUs2) includ-
ing 1% coal loss du ing anspo a ion.
Non-powe sec o coal demand (coking + non-coking coal) is expec ed o g ow a a
highe a e han he coal demand in he powe sec o . CIL, Coal Vision 2030, p edic s ha
non-powe sec o s will con ibu e o nea ly 30% o o al coal demand in he yea 2030.
Assuming a coal equi emen o 358 MT o he non-powe sec o (30% o o al coal
consumed in 2030 a he mos op imis ic 6% g ow h), he o al coal equi emen in India
will be 1194 MT in 2030.
CIL is he bigges coal mine in India and is esponsible o mining mo e han 80%
o domes ic p oduc ion. This is ollowed by app oxima ely 10% p oduc ion bo h by
Singa eni Collie ies Company Limi ed (SCCL) and cap i e p oduce s.
F om a compila ion o en i onmen al clea ance g an ed capaci y da a o indi idual
coal blocks (p oducing), i is es ima ed ha he o al mineable capaci y wi h CIL as o
FY 2020–2021 was o e 1040 MT compa ed o he o al p oduc ion o 596 MT illus-
a ing a su plus minable capaci y o 444 MT (MOC, 2021). Apa om he exis ing
ope a ional mining capaci y, 68 mines wi h a o al addi ional minable capaci y o 350
MTPA (868 MT/yea o al capaci y h ough enhancemen o cu en ope a ional mines;
i.e., 518 MTPA and opening up o new mines) a e unde di e en s ages o de elopmen

India’s Coal and Coal-Fi ed Elec ici y Needs by 2030 17
wi h CIL acco ding o mon hly s a is ical epo s o he Minis y o Coal (MOC). On op
o hese, six addi ional mines we e auc ioned o CIL which ha e a o al annual minable
capaci y o 144 MT. I all he capaci y comes in o ope a ion by 2029, CIL alone will ha e
a minable capaci y o mo e han 1500 MT.3
CIL is he la ges coal p oduce and has a o al mineable/en i onmen al clea ance
capaci y o mo e han 1040 MT in 2020–2021, bu coal p oduc ion o he same yea
s ood a 596 MT, indica ing a ound 60% u ilisa ion o he mines.
Figu e 1.3 Speci ic coal consump ion by coal-based powe s a ions in India.
Sou ce: Au ho s based on da a om CEA (2021)
Table 1.1 Elec ici y demand, coal-based powe gene a ion, and o al coal equi emen unde di -
e en g ow h a e scena ios in FY 2030 in India
S.
No.
Annual powe demand g ow h
a e o FY 2022-2030 (%)
To al powe
equi emen
in FY2030 (TWh)6
Coal- i ed
gene a ion in
FY2030 (TWh)
To al coal
equi emen
(MT)7
1 4.5% 2122 1017 668
2 5.0% 2204 1099 722
3 5.5% 2290 1185 778
4 6.0% 2378 1273 836
5 Coal Vision, CIL es ima e
o 2030 1500813009
Sou ce: Au ho s’ own, compiled om a ious sou ces.
18 Sunil Dahiya e al.
Table 1.2 Coal p oduc ion by CIL subsidia ies om 2016–2017 o 2020–2021 and pe mi ed En i onmen Clea ance (EC) capaci y o FY 2020–
2021 (MTPA)
Company 2016–2017 2017–2018 2018–2019 2019–2020 2020–2021 Pe mi ed p oduc ion (FY
2020–2021)
% U ilisa ion
ECL 40.52 43.57 50.16 50.40 45.03 122.00 37%
BCCL 37.04 32.61 31.04 27.73 24.66 128.00 19%
CCL 67.05 63.41 68.72 66.89 62.59 84.00 75%
NCL 84.10 93.02 101.50 108.05 115.05 128.00 90%
WCL 45.63 46.22 53.18 57.64 50.27 129.00 39%
SECLa140.00 144.71 157.35 150.55 150.60 226.00 67%
MCL 139.21 143.06 144.15 140.36 148.01 222.00 67%
NEC 0.60 0.78 0.78 0.52 NA 1.60
CIL 554.14 567.37 606.89 602.13 596.21 1040.60 57%
SCCL 61.34 62.01 64.40 64.04 50.58 68 (Coal-India, 2018)
aThis includes o al p oduc ion by cap i e and o he s.
ECL, Eas e n Coal ield Limi ed; BCCL, Bha a Coking Coal Limi ed; CCL, Cen al Coal ield Limi ed; NCL, No he n Coal ield Limi ed; WCL, Wes e n Coal ield
Limi ed; SECL, Sou h Eas e n Coal Field Limi ed; MCL, Mahanadi Coal ield Limi ed; NEC, No h Eas e n Coal ields; SCCL, Singa eni Collie ies Company Limi ed.
India’s Coal and Coal-Fi ed Elec ici y Needs by 2030 19
Apa om his, SCCL also has abou 68 MTPA mining capaci y and app oxima ely
120 mines wi h 640 MTPA capaci y we e alloca ed/auc ioned o cap i e/p i a e compa-
nies/s a e sec o en i ies since Ma ch 2015 unde a ious coal auc ion/allo men enches.4
Ou o he 120 mines auc ioned since 2015 only 27 a e ope a ional and 995 s ill emain
non-ope a ional.
I we add all ope a ional and mineable ese es wi h CIL and cap i e ope a ional
ese es wi h p i a e and o he public sec o en i ies, India will ha e a cumula i e coal
mining capaci y o mo e han 2200 MTPA by 2030. This is highe han e en he mos
conse a i e es ima es o 1194 MT coal equi emen a a 6% a e age annual elec ici y
demand g ow h a e, which o m he ou e limi .
Ou es ima es inco po a e he e ec s, i any, o ma ginal impac s o mine closu es.
The e a e 49 big mines unde CIL, cap i e, and o he s (FY 21) wi h a join minable
capaci y o mo e han 720 MT (612 unde CIL). O hese mo e han 35 mines wi h a
o al p oduc ion capaci y o 571 MTPA ha e mo e han nine yea s o li e le a he cu -
en a ed capaci y. Fu he in es iga ion o he e i emen po en ial o he exis ing mines
ound ha mines wi h an exis ing capaci y o mo e han 500 MTPA a e al eady planned
o go o capaci y ex ensions, lea ing e y ew big mines wi h a ela i ely small o al min-
ing capaci y o op o shu down ill 2030.
Figu e 1.4 Minable coal capaci y in India o FY 2030 om ope a ional and in-pipeline coal mines.
Sou ce: Minis y o Coal.
20 Sunil Dahiya e al.
Discussion
Based on he es ima es o u u e coal-powe ed gene a ion capaci y and coal equi e-
men s, i is e iden ha a subs an ially highe coal mining capaci y has al eady been
alloca ed o mee he medium- o-long- e m demand e en in he mos conse a i e case.
Ye , on 3 No embe 2022, he Finance Minis e launched he bigges -e e coal mine
auc ion o 141 coal mines ha , i ope a ionalised, would add ano he 305 MTPA o
coal-mining capaci y (PIB, 2022b). The con inued ocus on alloca ing new coal mines
implies ha he e is likely o be mo e han 50% su plus mining capaci y ela i e o
o eseeable demand. P esumably, he su plus mining capaci y will likely accoun o any
delays, e mina ions o wi hd awal o coal mines once alloca ed – as has been he a e
wi h he mines alloca ed be ween 2015 and 2019 whe e only 27 o he 80 coal mines
(app oxima ely 33% – Table 1.3) accoun ing o ~15% peak a ed capaci y could be
ope a ionalised as o Ma ch 2022 (RTI, 2022).
The con inued ocus on alloca ing new mines beyond he equi emen could ha e impo -
an ami ica ions o (i) delay in India’s pace o ene gy ansi ion; (ii) in luence widesp ead
changes o he indus y s uc u e sending a con using signal o he indus y, public, and
in e na ional s akeholde s; (iii) exace ba e pile-up in he s essed mining asse s; and (i )
ad e sely a ec en i onmen and social jus ice. An analysis o he ajec o y o alloca ion o
subsidies o he coal sec o in India as compa ed o hose alloca ed o enewables o e ime is
also no in line wi h he publici y a ound India’s commi men s o a ne ze o a ge by 2070.
T acking Go e nmen Suppo o he Coal Sec o in India
Swas i Raizada, Balasub amanian Viswana han, and Ch is ophe Bea on
(In e na ional Ins i u e o Sus ainable De elopmen )
His o ically, go e nmen suppo a he cen al and s a e le el has played a c ucial
ole ac oss he coal alue chain, making i a powe ul ool in shaping India’s u u e
ene gy mix.
Based on 18 subsidies ha could be iden i ied and we e p o ided by he cen al
go e nmen o bo h coal mining and coal consump ion, p edominan ly in powe
gene a ion, go e nmen subsidies o coal amoun ed o Rs. 15,933 c o es (USD 2.1
Table 1.3 S a us o Ope a ionalisa ion o Coal Blocks Alloca ed since 2015 (as o 31 Ma ch 2022,
MOC)
Alloca ion Rou e P oduc ion S a us 201510 201611 2017–2020 A e 2020 To al
Allo men aOpe a ional 11 2 – – 13
No P oducing 25 14 5 – 44
Auc ions Alloca ed 31 – 6 43 80
Te mina ed 9+3b– 2 – 14
Ope a ional 14 – – – 14
Non-p oducing 5 – 4 43 52
To al Ope a ional 25 2 00 27
Non-p oducing 30 14 9 43 96
No e: a Da a o e mina ed coal blocks ia he allo men ou e is no a ailable
b Te mina ion unde way; ma e sub-judice.
India’s Coal and Coal-Fi ed Elec ici y Needs by 2030 21
billion) in FY 2022 (Raizada e al., 2022). P o ided h ough GST concessions on
coal sales, coal subsidies ha e la gely s agna ed. O he iscally smalle policies co e
a ange o objec i es, including egional explo a ion, conse a ion and sa e y o coal
mines, explo a ion in di icul a eas, and special bene i s o employees. Di ec budge -
a y ans e s accoun ed o less han 4% o he o al subsidy amoun in FY 22. Also,
go e nmen subsidies o coal con inue o be highe han RE subsidies in FY 2022.
Fu he , s a e ac o s like coal-dependen SOEs – namely CIL, SCCL, NLC India
Limi ed, and NTPC Limi ed – play a c i ical ole in channelising go e nmen sup-
po o he coal sec o (Viswana han e al., 2022). In FY 2022, he combined capi-
al expendi u e o hese SOEs was a leas Rs. 42,500 c o es (USD 5.2 billion).
Go e nmen suppo can also ake he o m o concessional inancing and
s a e gua an ees. Known in e na ional public inance o coal p ojec s in India
o alled Rs.7,356 c o es (USD 987 million) be ween 2019 and 2021 (Oil Change
In e na ional, 2022). Da a on domes ic public inance o coal emains spa se wi h
only one coal powe p ojec known o ha e ecei ed a s andby c edi acili y o
Rs.1,024 c o es (USD 0.1 billion) om h ee banks in 2021. Domes ic s a e-owned
inancie s a e inc easingly eme ging as he lende s o las eso o he coal sec o
in India (Cen e o Financial Accoun abili y & Clima e T ends, 2022).
Re e ences
Cen e o Financial Accoun abili y & Clima e T ends. (2022). Coal s Renewables
In es men Repo 2022. h ps://www .cen a .o g /wp -con en /uploads /2022 /12 /COAL -VS
-RENEWABLES -INVESTMENT -REPORT -1 .pd
Oil Change In e na ional. (2022). A A C oss oads: Assessing G20 and MDB In e na ional
Ene gy Finance Ahead o S op Funding Fossils Pledge Deadline. h ps://p iceo oil .o g /
con en /uploads /2022 /11 /G20 -A -A -C oss oads .pd
Raizada, S., Laan, T., Manish, M., & Viswana han, B. (2022). Mapping India’s Ene gy Policy
2022, Decembe 2022 Upda e. In e na ional Ins i u e o Sus ainable De elopmen .
h ps://www .iisd .o g /s o y /mapping -india -ene gy -policy -2022 -upda e
Viswana han, B., Raizada, S., Bassi, A., Pallaske, G., & Bea on, C. (2022). India’s S a e-Owned
Ene gy En e p ises, 2020–2050. In e na ional Ins i u e o Sus ainable De elopmen .
h ps://www .iisd .o g /publica ions / epo /india -s a e -owned -ene gy -en e p ises
0
5,000
10,000
15,000
20,000
25,000
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22
INR c o e, eal 2022
O he s
Concessional excise du y on coal p oducon
Non-compliance o coal washing
Concessional cus om du y on impo o coal
Concessional GST a es on coal p oducon
Figu e 1.5 To al coal subsidies in India, FY 2014–2022 ( eal 2022).
Sou ce: Mapping India's Ene gy Policy 2022, Decembe 2022 Upda e (2022). In e na ional Ins i u e o
Sus ainable De elopmen .

22 Sunil Dahiya e al.
Po en ial Delays in Ene gy T ansi ion
E en as India has announced signi ican ene gy ansi ion a ge s a COP 26 om coal o
a majo i y sha e o enewables in powe gene a ion, he excess coal-mining capaci y may
h ea en o pu a spanne i he en i e capaci y we e o come onboa d. Gi en ha s a e
PSUs (mos ly s a e powe gene a ion companies and mine al de elopmen co po a ions
ha a e usually esponsible o ensu ing adequa e powe supply in he s a es and also
own la ge he mal powe plan s) command nea ly 40% o he peak a ed capaci y (PRC)
o mines alloca ed be ween 2015 and 2022 (Figu e 1.5), hese companies may also ace
a exed dilemma – should hey epu pose exis ing he mal powe plan s: (see Chap e 12
in Sec ion 3 o a discussion on epu posing) and in es in enewable powe sec o which
would lea e hei coal mines as ‘s essed asse s’ OR con inue o u ilise mine al esou ces
om he al eady alloca ed mines which in u n would delay hei ene gy ansi ion?
Needless o say, i hey choose he la e , much o India’s ene gy ansi ion migh
ge delayed. Fu he , many o hese s a e PSUs ha e en e ed in o Mine-De elope -cum-
Ope a o (MDO) ag eemen s wi h p i a e companies ha ha e speci ic con ac ual
pe o mance ag eemen s whe ein he PSUs canno a y hei coal pu chase quan i ies
beyond a ce ain amoun , les hey incu de aul and po en ial li iga ion (Figu e 1.5).
Such con ac ual condi ions a e likely o u he bind he s a e PSUs o onboa d and
sus ain signi ican coal p oduc ion olumes, po en ially inc easing he sha e o he mal
powe in he p oduc ion mix.
Changes o he Indus y S uc u e
I is e iden ha a e 2015, he newly alloca ed coal mine capaci y and he capaci y
emba ked o allo men a e la ge han he cu en mining capaci y wi h CIL, and he
Figu e 1.6 Illus a i e clause om MDO ag eemen .
Sou ce: Minis y o Coal.
India’s Coal and Coal-Fi ed Elec ici y Needs by 2030 23
o al alloca ed capaci y s ands app oxima ely h ee imes he cu en annual p oduc ion
olume. Fu he , he hi he o dominan CIL has been alloca ed less han a qua e o he
new mining capaci y, while s a e PSUs ha e aken up he lion’s sha e o new mine alloca-
ions. Gi en he su plus mining capaci y p esen in India, no all o hese newly alloca ed/
auc ioned mines a e likely o become ope a ional gi en he p ojec ed demand. I emains
o be seen which o he mines will become ope a ional and which ones will be likely
sc apped. Depending on he dilemmas o ope a ionalisa ion o hese new mines, he coal-
mining indus y s uc u e can unde go a adical ans o ma ion om being domina ed by
a cen al PSU (CIL and i s subsidia ies) o being led by p i a e mining o s a e PSUs along
wi h hei p i a e MDO ope a o s. Such adical ans o ma ion o he indus y s uc u e
in pe iods o unce ain y (owing o unce ain y a ound he pace o ene gy ansi ion) can
h ow up signi ican challenges. The s a e could ha e subs an ially less con ol on he
p oduc ion and dis ibu ion o coal esou ces o powe plan s ac oss he coun y. The e
could be signi ican p ice ola ili y in he in e im pe iod leading o abandonmen o selec
coal mines, jeopa dising in es men s in hem and associa ed businesses dependen on
hem. The planning o a Jus T ansi ion o mine-a ec ed wo ke s and communi ies
would equi e including speci ic plans o ansi ioning om new asse s beyond CIL and
would look e y di e en when he esponsibili y o ansi ion shi s om he public
sec o o he p i a e sec o .
This unce ain y is also likely o send con used signals o he s akeholde s and ma ke
pa icipan s – including mining companies, he mal powe p oduce s, banks and in es-
o communi y, and s a e and local go e nmen . This is al eady mani es ing in he epid
Figu e 1.7 New cap i e coal mines alloca ed be ween 2015 and 2022.
Sou ce: Minis y o Coal.
24 Sunil Dahiya e al.
esponse o coal mining auc ions whe e only a ew bids we e ecei ed o he newly auc-
ioned coal mines i.e. T anche 11–14 o he coal mining auc ions ha ook place du ing
he pe iod 2020–2022 (Table 1.4). Twen y-eigh pe cen o he auc ioned blocks saw
less han 3 bidde s while 18% saw only 3 bidde s.
Piling o S essed Asse s
The su plus mining capaci ies may likely become s essed asse s as was seen in he case
o he mal powe plan s alloca ed be ween 2008 and 2014, much o which became
s anded as he mal powe demand ailed o keep pace wi h capaci y. This had wide-
sp ead consequences as he in es men s become non-pe o ming asse s (NPAs) o he
banking sec o and esul in dis ess sale o s essed asse s a a signi ican economic loss.
The o e capaci y became c i ical in 2018 when he go e nmen iden i ied 34 powe s a-
ions wi h a o al capaci y o 40 GW and bank exposu e o 1.7 lakh c o e as s anded/
s essed asse s. These asse s we e pu up o insol ency unde he bank up cy code
h ough he Na ional Company Law T ibunal (NCLT) la e . A e ou long yea s o
ying o esol e hese s anded asse s h ough he insol ency p ocess, he e a e a leas
10.5 GW o 25% o hese asse s which s and a he junc u e o being sold as sc ap as
o da e because hey did no ind any buye s and couldn’ be esol ed (ET, 2022). In
he case o coal mines, his p oblem could become e en mo e acu e gi en ha he lion’s
sha e o new mine capaci y lies wi h s a e PSUs ha ypically ha e ela i ely weake
inancial heal h.
Ad e se En i onmen al and Social Jus ice Consequences
I is clea ha no all o he alloca ed coal mines a e likely o ge ope a ionalised. Howe e ,
gi en he lack o cla i y a ound which o he mines may ail o come unde p oduc ion, a
much la ge se o mines is likely o pu sue mining clea ances (en i onmen al clea ances
and social consen ), acqui e land and cu o es s (whe e e mining a ea includes o es
co e ), and e en se up mining in as uc u e – only o become edundan . No only is
his likely o esul in inancial s ess o he mining companies, bu i is also likely o be a
deadweigh loss o he economy di e ing p ecious economic and na u al esou ces om
o he p essing equi emen s. A he same ime, any unnecessa y social and en i onmen al
cos s incu ed will h ea en India’s commi men s o en i onmen al and social jus ice and
he agenda o Jus T ansi ion. This is pa icula ly c i ical gi en he ecen a emp s o
mo e owa ds as e clea ances o coal mines (News-Click, 2022).
Table 1.4 No. o bidde s o success ully auc ioned mines – T anche 11–14
Success ul auc ions (# o blocks) 1 2 3 4 >4 To al
11 h T anche – 3 5 6 5 19
11 h T anche– 2nd a emp 1 – – – – 1
12 h T anche - 4 2 1 1 8
12 h T anche– 2nd a emp 2 1 1 – – 4
13 h T anche – 2 3 2 3 10
14 h T anche – - 2 – 3 5
India’s Coal and Coal-Fi ed Elec ici y Needs by 2030 25
Conclusions and Recommenda ions
Os ensibly, he apid expansion in coal-mining capaci y o e he pas decade has p o-
ceeded on he p e ex o implica ions o India’s ene gy secu i y and impe a i e o sus-
aining apid economic g ow h (MOC, 2022). Howe e , as he analysis p esen ed in his
chap e indica es, India can be con iden ha cu en coal powe capaci y and coal mining
capaci y a e mo e han adequa e o se e he coun y’s g owing elec ici y demand needs.
E en as he e emain epea ed he mal powe sho ages and ou ages ac oss he coun y
leading o ques ions on he adequa e supply o coal in he coun y (The-Hindu, 2022), i
is clea ha he e is su plus capaci y cu en ly in he coal-mining sec o . The same is e en
a e ed by he Coal Minis e ’s s a emen in he pa liamen whe e he men ioned ha
In 2022-2023 (Ap il, 2022 o June, 2022), all India a e age gap be ween he Ene gy
Requi emen and Ene gy Supplied was only 1%. Gap be ween ene gy demand and
supply is gene ally on accoun o ac o s o he han inadequacy o powe a ailabili y
in he coun y, e.g. cons ain s in he dis ibu ion ne wo k, inancial cons ain s,
comme cial easons, o ced ou age o gene a ing uni s, e c. The e is no sho age o
coal in he coun y.
(PQ-MOC, 2022)
In a sepa a e analysis, he Cen e o Resea ch on Ene gy and Clean Ai highligh ed ha
he coal sho ages in he i s hal o 2022 we en’ a sho age o coal-mining capaci y bu
a lacuna in managing he esou ces, supply, and aligned in as uc u e o be able o supply
o he p edic ed needs o coal o he pe iod (CREA, 2022). The analysis ound ha he
coal sho age a espec i e powe s a ions occu ed due o mismanagemen in mining, coal
e acua ion om coal mines, lack o s ock build-up by he powe s a ions, and he egula o
ailing in ensu ing he e icien unc ion o he coal supply chain. I con i med ha India
has mo e han enough domes ic mining capaci y o mee he exis ing demand com o ably.
Thus, he con inued alloca ion o new coal mines does li le o add o India’s ene gy
secu i y, a he i delays he ansi ion o enewables sending a mixed signal o he ma ke
on he pace o India’s ene gy ansi ion. I mus be no ed ha he imely implemen a ion
o enewable powe is c i ical, e en o ene gy secu i y, since di e si ica ion indemni-
ies agains ene gy isk. A he same ime, he alloca ion o excess capaci y h ea ens a
po en ial si ua ion o s essed asse s and signi ican a oidable economic, en i onmen al,
and social cos s o he economy. The e is, hus, a need o e isi ing he coal mining
alloca ions and b inging hem in line wi h he medium- o long- e m demand p ojec-
ions. The e is also an oppo uni y o look a a Jus T ansi ion om he lens o social
and en i onmen al jus ice in he opening o new mines whe ein conside a ions o jus ice
can pe mea e he opening o new mines in densely o es ed, ecologically sensi i e a eas.
Ra he han in es ing in a sunse indus y, i will be bene icial o ocus on hings
like g id mode nisa ion, be e in as uc u e o RE in eg a ion, and eal- ime demand
managemen and ensu ing ha he coun y mee s i s commi men o 500GW non- ossil
ene gy capaci y by 2030.
No es
1 Ex-bus demand doesn’ include auxilia y consump ion.
2 Billion Uni s.
3 Mineable capaci y om SCCL and cap i e mines is excluded om his igu e.
32 Sambi Basu and Soumya P akash Nayak
p ocu ing wind u bines and sola modules a compe i i e p ices. The a e age p ice
o sola modules has inc eased by abou 35%9 and is likely o emain high as aw
ma e ial cos s a e sky ocke ing. This would impac he RE de elope s and domes ic
manu ac u e s alike and would be a majo hind ance in achie ing he a ge s.
3. Financial heal h o he S a e and Elec ici y Dis ibu ion Company (DISCOMs)
The iabili y o RE in he ace o ising aw ma e ial and inpu cos s is con in-
gen on de elope s’ abili y o secu e modules wi hin budge and aise deb und a
easonable cos s (say less han 8.5%). Howe e , he isks aced by he de elope s,
pa icula ly wi h high amoun s o ecei ables om DISCOMs, impac hei cos s o
bo owing. The o e all dues o DISCOMs o RE independen powe p oduce s was
abou Rs. 21,000 c o es (as pe PRAAPTI po al) pu ing p essu e on he wo king
capi al and deb se icing o he de elope s. This is ue o mos o he RE- ich
s a es, including Andh a P adesh, Rajas han, Madhya P adesh, Ka na aka, and
Telangana, which ha e high e enue de ici s, la ge ou s anding liabili ies, and la ge
ou s anding con ingen liabili ies. These make he s a es suspec in e ms o ex ending
c edible coun e gua an ees o RE de elopmen . Mo eo e , DISCOMs a e s essed
o liquidi y, a ising om ope a ional ine iciency, e enue cos gaps a ising om
inadequa e a i e isions, ou s anding subsidy ecei ables om he go e nmen and
ecei ables om go e nmen depa men s o elec ici y consumed. All o hese add
o comme cial isk and cos s o bo owing o he de elope s (also see chap e 3).
4. T ue cos o RE
The cos o RE also depends on he loca ion o he gene a ion and u ilisa ion, as
he landed cos o RE a place o use may be e y high a e all ansmission cos s
and losses a e s acked up. Thus, i is no jus he RE po en ial ha indica es he cos ,
bu also loca ion and use. Disco e ed a i s h ough bidding p ocess do no e lec
he ue cos o RE, which may bu den powe p ocu emen cos s i RE is manda ed
o be a mus un.
5. Con lic ing policies
The impac o Basic Cus om Du y (BCD) o 40% on modules and 25% on sola
cells, while p o ec ing domes ic manu ac u ing will ad e sely a ec he a i s o e ed
by he de elope s10 and would slow down he p ocess o capaci y addi ion in he
sola sec o .
App ehensions on he applicabili y o BCD ha e been exp essed by manu ac u e s
housed in he Special Economic Zones (SEZs), as hey a e ega ded as in e na ional
e i o y o ade and comme ce, gi en ha local aw ma e ials bough by p oduce s
a e ea ed as expo s and goods p oduced in he SEZs and sold in Domes ic T a ic
A ea a e ega ded as impo s. Nea ly 40% o module manu ac u ing and 60% o he
cell manu ac u ing capaci y is in SEZs.
6. Inc easing pene a ion o a iable RE ende s he g id uns able
RE (wi hou s o age) poses a huge challenge o he g id ope a o , as compa ed
o dispa chable ossil uel plan s, owing o hei a iable and in e mi en na u e.
The e is always an elemen o unce ain y in he ou pu o sola and wind a ailabili y
o ecas s and is e y loca ion speci ic. The capaci y u ilisa ion ac o o enewables
( o sola : 18% and o wind: 22%) is subs an ially lowe han ha o con en ional
powe plan s. Mo eo e , wi h sola and wind plan s ha ing a mus - un s a us, he
plan load ac o s o con en ional powe plan s a e on a downwa d end, leading
o highe gene a ion cos s. Va iable RE, in he absence o cos -e ec i e and adequa e
ene gy s o age sys ems (also see chap e 3), poses a challenge in ensu ing g id s abili y.

India’s Ene gy T ilemma and Coal-based Powe Gene a ion 33
7. India is p edominan ly a coal-dependen economy
India’s g ow h aspi a ions canno be achie ed h ough RE and ene gy e iciency
alone. E en ba e y s o age and eme ging echnologies, like g een hyd ogen and
usion, a e nei he cos -e ec i e no comme cially eady ye . The e o e, ossil uels
would ha e o powe India o ul il i s de elopmen objec i es. While en i onmen al
sus ainabili y and emission in ensi y will be add essed h ough he con inued deploy-
men o enewables and inc easing pene a ion o new clean echnologies as well as
ene gy s o age, coal will con inue o play a majo ole along he ene gy ansi ion
landscape. While we do no ha e enough gas and ha nessing nuclea ene gy in a
densely popula ed democ a ic coun y can be slow, we si on huge ese es o coal.
Besides, we a e locked in o coal- ela ed in as uc u e and in es men s. Thus, in iew
o he abo e and as discussed below, phasing down o he coal-based powe gene a-
ion will be ex emely di icul conside ing he ole o coal in India’s socio-economic
de elopmen and i s ene gy esou ce a ailabili y.
I is ime o ecognise ha ene gy ansi ion is no he same as echnology ansi ion.
Technology pene a ion can be dis up i e and apid, bu ene gy ansi ion is a g adual
p ocess ha should balance socio-economic and en i onmen al implica ions in an equi-
able manne 11.
Impo ance o Coal in India’s Ene gy T ansi ion
I ook an unce ain and dis up i e e en like he Russia–Uk aine wa o demons a e
he impo ance o ene gy secu i y o a coun y. Ene gy secu i y implies adequa e and
eliable supply, and his en ails looking inwa d o ene gy esou ces educing ex e nal
dependence ac oss he en i e alue chain. The ecen e en s unde sco e ha he impo -
ance o ossil uels, and nuclea ene gy canno be wished away easily in a ou o clean
and sa e ene gy, e en o he de eloped coun ies like Ge many, UK, F ance, and he
USA. Many o hese coun ies, pa icula ly he Eu opean na ions ha ha e been oci e -
ous agains en i onmen ally di y ossil uels, and s opped expansion o nuclea powe
capaci y a e he Th ee Miles Island acciden (1979), he Che nobyl disas e (1986), and
Fukushima nuclea calami y (2011), a e once again ying o e i e mo hballed he mal
plan s and e-plan nuclea powe de elopmen . Reali y has dawned on all na ions, de el-
oped and de eloping alike, ha apid deca bonisa ion h ough phase-ou o phase-down
o coal plan s is an unachie able d eam. The ecen a emp s ac oss he globe o e i e
con en ional powe gene a ion seals he discussion on whe he coal should con inue o
igu e amongs he ansi ion uel mix along India’s de elopmen ajec o y, despi e ha -
ing decla ed ambi ious enewable ene gy a ge s.
The challenges o expanding a iable RE (VRE), as discussed abo e, a e compounded
by i s ad e se impac on ene gy secu i y. Thus, he onus o ene gising de elopmen in
India wi h eliable and a o dable ene gy es s on con en ional ossil uels, majo hyd o,
and nuclea . Majo hyd o and nuclea de elopmen in India ha e been qui e slow so
a , wi h hei sha e in o al gene a ion emaining s agnan o decades. India does no
ha e enough gas which has esul ed in 14.3GW o s anded gas-based capaci y ac oss 31
plan s, ou o a o al ins alled gas-based capaci y o 24.82 GW (Ba uah, 2023). Howe e ,
now wi h inc eased pene a ion o RE in he g id and esul ing g id ins abili y and he
need o mee a apidly g owing peak demand du ing high-demand seasons, expe imen s
a e being explo ed o use he s anded gas plan s using impo ed lique ied na u al gas
34 Sambi Basu and Soumya P akash Nayak
(LNG) o mee he demand and balance he g id. This may be inancially manageable
conside ing ha du ing he peak season o summe in India he global gas p ices a e
ela i ely cheape and medium- e m u u e con ac s may yield a ac i e deals. S udies
ha e obse ed ha e en wi h ola ile global LNG p ices, gas-based powe gene a ion
as a elie o peaking equi emen du ing summe season may be mo e economical han
sho - e m ma ke op ions, including pu chases o e powe exchange, bila e al ade,
and de ia ion se lemen mechanisms (Ba uah, 2023). Thus, blessed wi h la ge domes ic
coal ese es and he impo ance o elec ici y o balance India’s ene gy ilemma, coal
will play a c i ical ole in i s de elopmen ajec o y o e he nex couple o decades wi h
addi ional suppo om o he con en ional uels.
A coal ansi ion exposu e index in oduced by In e na ional Ene gy Agency (IEA)
aking in o conside a ion a coun y’s coal – (i) ene gy dependence, (ii) de elopmen gap,
(iii) lock-in, and (i ) economic dependence, indica es ha Indonesia, Mongolia, China,
Vie nam, India, Sou h A ica, and Bo swana ha e e y high indices o coal exposu e in
ansi ion (Tache , 2022). India’s exposu e is high on accoun o he de elopmen gap,
lock-in, and coal dependence.
India’s coal consump ion has doubled since 2007, g owing a an a e age annual a e o
abou 6% and is led by elec ici y gene a ion. Coal-based elec ici y gene a ion accoun s
o mo e han 73% o India’s elec ici y needs and is likely o emain he majo sou ce
o e he nex couple o decades. Coal-based capaci y a abou 204 GW accoun s o
mo e han 50% o he o e all g id-connec ed powe gene a ion capaci y, wi h a no able
addi ional coal-based capaci y unde cons uc ion. Acco ding o a CEA Repo ,12 o he
o al 53.24 GW o he mal powe plan s (TPP) in he pipeline, abou 24.4GW o he TPPs
ha e been pu on hold o a e unlikely o be cons uc ed and abou 28.87GW TPPs a e
likely o be included in he na ional capaci y be ween 2022–2023 and 2026–2027. The
TPPs unlikely o be cons uc ed a e mos ly in he p i a e sec o (abou 23.21GWs) and
a e no inding inancing o going h ough liquida ion. The p i a e sec o has been acing
di icul y in inancing coal-based p ojec s as banks and inancial ins i u ions a ound he
wo ld a e s aying away om coal mining and coal TPP p ojec s. The public sec o , how-
e e , has been able o aise inance om go e nmen inance companies. S a e and cen al
sec o p ojec s accoun o he en i e 28.87GW o he p ojec s unde cons uc ion and
likely o be added. O e he nex decade he coal demand by TPPs, ope a ing a ela i ely
low u ilisa ion le els in ecen yea s, a ound 58.87% in 2021–22 when in 2008–2009
i was 77.7%, due o apid pene a ion o RE, is likely o go up subs an ially.13 Thus,
despi e no new capaci y o coal TPP being added, coal shall con inue o domina e elec-
ici y gene a ion and he ene gy scena io in he sho - o-medium e m.
Fu he , phasing ou o exis ing coal TPPs and apidly eplacing hem wi h clean ene gy
esou ces is no a likely s a egy in he immedia e u u e. This is because he Indian powe
sec o is locked in o a baske o young coal-based powe plan s, whe e he a e age age
o a plan is jus abou 13 yea s, while i s economic li e is 40 yea s.14 Compa ed o his,
he a e age age o coal plan s in Sou h A ica is 30 yea s, and 41 yea s o Russia and he
USA. The locked-in in es men o he Indian TPP po olio exceeds Rs. 8 illion,15 and
TPPs unde cons uc ion would u he add o he locked-in in es men s. I coal p oduc-
ion, anspo a ion, and associa ed in as uc u e o coal TPPs a e conside ed, hen he
in es men s locked in o would be massi e and i would be e y cos ly o phase ou much
be o e he comple ion o hei economic li e.
India was he wo ld’s second-la ges p oduce o coal in 2017, acco ding o he IEA,
while China opped he lis . India p oduced abou 780–800 million ons o coal in 2022,
India’s Ene gy T ilemma and Coal-based Powe Gene a ion 35
acco ding o he Minis y o Coal (MoC), bu consump ion s ill exceeded by abou 200
million ons ha was impo ed om Indonesia, Sou h A ica, and Aus alia. A ound
87% o India’s p o en coal ese es o nea ly 150 billion onnes is non-coking coal, ye ,
a i h o he he mal coal equi emen is impo ed. In compa ison, China, which con-
sumes ou imes mo e coal han India, also impo s abou 200 million ons annually.
Conside ing ha a ious s udies conclude ha he u u e o coal is secu e in India o
ano he 20–30 yea s, e en as VRE p oli e a es, la ge coal impo s is a ma e o conce n
gi en i s ulne abili y o high global p ices16 and ene gy secu i y issues.
BP Ene gy Ou look 201917 p ojec ed he coal’s sha e in India’s p ima y ene gy con-
sump ion o be 48% in 2040 despi e a decline om 56% in 2017. Likewise, IEA (in
India Ene gy Ou look 2021) has obse ed ha coal in he powe sec o will be 67%
(in MTOE18 e ms) o sha e in 2030 and 50% in 2040 unde a Business-as-Usual sce-
na io. Fu he , acco ding o he MoC, he equi emen o coal by 2029–2030 has been
es ima ed a abou 1.45–1.5 billion onnes, o which domes ic p oduc ion will ha e o
go up subs an ially o mee he demand and b ing down coal impo s, al hough i may
emain abou 170MT.19,20
Thus, he coal companies in India will be amping up coal p oduc ion o mee he
MoC’s p ojec ed 63% highe a ge s o abou 1.5 billion ons o coal by 2030. In iew
o his, he MoC has been amending mine al concession ules, in oducing policies and
guidelines and ca ying ou auc ions o coal mines, which include comme cial and cap-
i e mines. Supply o he powe sec o , a abou 85% o o al dispa ches, emains e y
high and will g ow as demand om coal-based TPPs emains high o mee India’s elec-
ici y needs. Opening o new mines and ise in p oduc ion will lock in o coal as a uel
sou ce o a long ime. No wi hs anding he expec ed g ow h in coal p oduc ion, coal
demand is likely o ou s ip domes ic supply, hough he sha e o impo s is likely o
subs an ially educe o e he nex couple o yea s. The gap be ween domes ic demand
and supply o he mal coal canno be b idged as India has e y limi ed ese es o high-
g ade he mal coal and impo ed coal blending is equi ed o e icien combus ion and
educed ash gene a ion. Besides, he mal coal impo s will con inue o ca e o impo ed
coal-based coas al he mal plan s o he en i e economic li e o hese plan s.
India’s socio-economic dependence on coal is ex emely high (also see chap e 3).
Se e al s a es a e ex emely dependen on coal, pa icula ly 6 s a es co e ing 33 dis-
ic s o he 284 coal-dependen dis ic s as es ima ed by a s udy (Pai, 2021). A s udy
inds ha mo e han 3.6 million people a e ei he di ec ly o indi ec ly employed in
he coal mining and powe sec o s in 159 dis ic s in India. O he 3.6 million people,
nea ly 80% o he jobs a e linked o coal mining loca ed ac oss 51 dis ic s, while he
es o he jobs a e linked o coal powe plan s (Agga wal, 2021). Coal is a sou ce
o huge e enue o he S a es and Cen e h ough axes, oyal ies, Dis ic Mine al
Founda ion (DMF) unds and Co po a e Social Responsibili y (CSR) unds. Mos o
he S a es ha ing la ge coal esou ces a e economically disad an aged and unde de-
eloped, making hem ex emely ulne able o he e enues om he mining sec o
and dependen o c ea ion o li elihood and in as uc u e bo h physical and social.
Fu he , Indian Railways (IRs), which is one o he la ges employe s in he coun y
wi h daily passenge a ic o mo e han 20 million and an annual eigh loading
exceeding 1400 million ons, has coal anspo making up mo e han 47% o he IRs
eigh e enues and has e en highe sha e in i s p o i s (Khan, 2022). The e o e, he
impo ance o coal sec o o he socio-economic impe a i es and de elopmen o he
coun y is well ecognised and deeply en enched.
36 Sambi Basu and Soumya P akash Nayak
Coal S a egy o India’s Deca bonisa ion T ajec o y
As discussed ea lie , ene gy ansi ion along a deca bonisa ion ajec o y in India is
ex emely complex on wo coun s – (i) balancing he ene gy ilemma o secu e high
economic g ow h and sus ainable de elopmen wi h uni e sal ene gy access a a o dable
a es and (ii) di icul y o mo ing away om coal gi en i s abundance, a o dabili y, lock-
in and deep socio-economic dependence. T ansi ion is mainly abou people, echnology,
inance, and en i onmen and is sys emic in na u e. While he e is no deba e ha India
will s ay commi ed o a sus ainable ene gy ansi ion wi h cha ac e is ic g een, clean,
and e icien ene gy use, he key issue is abou he pace o his ansi ion de ined by he
challenges and con ex discussed ea lie .
India will con inue o push o RE and se e al eme ging clean ene gy echnologies, bu
he impo ance o coal in he ene gy baske is likely o emain signi ican o ano he wo
decades. NITI Aayog and IEA assessed ha e en a ound 2035–2040 he o e all demand
o coal emains s ong, al hough he e may be a d op in he sha e o coal in p ima y
ene gy supply (Ni i Aayog, 2022). A well-planned s a egy o coal-based de elopmen ,
pa icula ly o e he nex wo decades, would nudge he economy on a desi ed sus ain-
able g ow h pa h. So, in he ansi ion s a egy p oposed nex , any phase ou o phase
down in coal is no en isaged bo h in he sho and medium e m. Ra he , i conside s
he opening o new coal mines o mee ene gy and coal demand. Unde -cons uc ion
coal TPPs will come on-s eam and exis ing old ine icien coal TPPs will be eno a ed,
mode nised, and ecei e economic li e ex ension. Al hough India’s clima e commi men s
could moun p essu e on coal TPPs o ea ly e i emen , echno-economic conside a-
ions and he need o economic g ow h would domina e decisions. Also, in he long
e m, he e may be signi ican coal demand o p ojec ed adop ion o clean coal ech-
nologies such as coal gasi ica ion, coal lique ac ion e c. Fu he , one has o ind ways o
equip coal-based and o he echnologies o main aining g id balance being h ea ened
by g ea e pene a ion o a iabili y in he sys em and ene gy demand managemen and
conse a ion. Figu e 2.1 p esen s a schema ic o he coal s a egy o India’s deca bonisa-
ion ajec o y in a phased manne .
The immedia e equi emen is o imp o e he ope a ional and inancial pe o mance o
he DISCOMs (see chap e 3). E o s a e o ming he dis ibu ion segmen o he elec ic-
i y sec o ha e been con inuing o a long ime, bu despi e some imp o emen s in se e al
a eas he sec o con inues o be he weakes link. DISCOMs pe o mance imp o emen
help mi iga e he comme cial isk and inancial posi ion along he en i e alue chain,
as he inancial pe o mance o coal TPPs and coal p oduce s ul ima ely depend on he
inancial heal h o DISCOMs. DISCOM ini ia i es o b ing down ope a ional losses and
demand managemen would also ha e signi ican implica ions o elec ici y and hence
coal demand. Besides ensu ing esou ce adequacy, suppo ing gene a ion companies o
eno a ion, mode nisa ion, e iciency imp o emen and lexibilisa ion o plan s, and sup-
po ing hyb idisa ion o coal TPPs wi h enewables as well as epu posing o plan s, a e
all linked wi h he inancial and ope a ional si ua ion o he DISCOMs.
Conside ing ha 28.87GW o unde -cons uc ion coal TPPs a e likely o be added o a
young po olio o he mal plan s o e his decade and ha he capaci y u ilisa ion o he
plan s will ise signi ican ly wi h ising demand, i is impe a i e o ensu e ha all he new
plan s a e highly e icien , wi h s a e-o - he-a emission mi iga ion equipmen , bo h in
si u and end-o -pipe. To his e ec , he d a Na ional Elec ici y Policy 2021 lays down
a ision o a inancially iable and en i onmen ally sus ainable powe sec o u he ing
India’s Ene gy T ilemma and Coal-based Powe Gene a ion 37
ene gy secu i y and p o iding eliable 24 × 7 powe a a easonable p ice. S ingen emis-
sion no ms ha e been no i ied by he Minis y o En i onmen , Fo es & Clima e Change
(MoEFCC) o SO2, NOx, me cu y and wa e , which a e equi ed o be achie ed wi hin a
speci ied ime schedule and ha e cos implica ions on he ope a ion/design o coal-based
plan s. In addi ion o he equipmen cos , hey also en ail auxilia y elec ici y consump-
ion. The policy p oposes ha e o s mus be made o mee he compliance no ms in he
mos cos -e ec i e way o minimise cos o he consume s. I u he sugges s ha he
egula o should allow his unde sec ions 62 and 63 o he Elec ici y Ac 2003. The
d a policy also p o ides ha all u u e coal-based plan s should deploy ul a-supe c i i-
cal less-pollu ing echnologies o o he mo e e icien echnology.
Indian coal is o e y low g ade ha ing e y high ash con en (30–45%), which p o-
duces la ge quan i ies o ly-ash and bo om ash in coal TPPs, he disposal o which poses
an en i onmen al challenge. As coal combus ion in TPPs o e he sho o medium e m
g ows, he need o p io i ize u ilisa ion o ash and byp oduc s o combus ion is pa a-
moun . The MoEFCC has issued a no i ica ion on 31 Decembe 2021 manda ing all TPPs
o u ilise 100% ly-ash in an en i onmen ally iendly manne o making cons uc ion
ma e ial, eclaiming low-lying a eas, mine illing, ag icul u e and was eland de elop-
men , e c. While he ocus so a is on known a eas o comme cially iable applica ions,
in he long e m mo e alue-added use o eme ging applica ions and echnologies would
gain impo ance.
Recognizing s ong g ow h in elec ici y demand, he Minis y o Powe (MoP) has
ecen ly issued an ad iso y, h ough he CEA, asking powe gene a ion u ili ies o no
e i e coal- i ed powe plan s ill 2030, and also ensu e a ailabili y o uni s h ough
eno a ion and mode nisa ion (R&M) ac i i ies.21 Wi h app op ia e spending on main-
enance, R&M and li e ex ension (LE) plan s can ope a e o 35–40 yea s. This comes
Coal S a egy o India’s Deca boniza ion: A Th ee Phase App oach
◾Besides con inuing wi h RE, i would be essen ial o con inue wi h coal-based gene a ion while inding ways o g eening he sam
e,
ocus on imp o ing e iciency, accele a e adop ion o demand managemen , ene gy s o age and new clean ene gy echnologies
◾The s a egy o India’s deca boniza ion is based on a h ee phased app oach
Sho Te m
•Discom e o ms
•Coal-based plan s
unde cons ucon
•Re ing ine icien
plan s
•R&M li e ex ension
•G een Coal –blending
wi h Biomass
•P epa ing o Jus
T ansion
Medium Te m
•DSM
•Flexibilizaon o
bee ha ness RE
•Repu posing exisng
plan s and p ojec s
•Mains eaming BESS
and o he s o age
echnologies
(including hyd ogen)
Long Te m
•Ca bon Cap u e and
Ulizaon Sys ems
•Coal Gasi icaon
•Eme ging echnologies
in gene aon and
s o age
Figu e 2.1 Coal s a egy o India’s deca bonisa ion ajec o y in a phased manne .
Sou ce: Au ho ’s own.

38 Sambi Basu and Soumya P akash Nayak
close on he heels o an MoP ad iso y ha coal-based powe plan s olde han 25 yea s
should be closed as pa o he coun y’s deca bonisa ion s a egy a ew yea s back and
a ecen slowdown in RE capaci y addi ion. This was on he basis o plan li e assess-
men s ha abou 58% o he capaci y o he 204 GW coal plan s in ope a ion a e less
han a decade old and ano he 21% o he capaci y is 11–20 yea s old. The emaining
9% o he capaci y is abou 21–30 yea s old, 11% is abou 31–40 yea s old, and 2% o
he capaci y is mo e han 40 yea s old.22 I was assessed ha abou a i h o he o al
coal TPPs (mos ly sub-c i ical) capaci y could be aken ou o decommissioning imme-
dia ely. Howe e , he ecen MoP ad iso y disallows he p e iously es ima ed e i emen
o abou 50–60 GWs coal TPPs o e he nex eigh yea s and needs o e isi expec ed
e i emen s o TPPs om 2031 onwa ds.23 Responding o en i onmen al conce ns o coal
gene a ion expansion, CEA has issued e ised guidelines o R&M o acili a e compli-
ance wi h en i onmen al no ms, acili a e biomass co- i ing, lowe wa e consump ion,
and enhance lexibili y in addi ion o achie ing highe e iciency le els, li e ex ension
and aising ope a i e capaci y. The MOEFCC issued s ingen emission no ms and no i-
ied “En i onmen (P o ec ion) Amendmen Rules, 2015” o he mal powe s a ions on
07.12.2015, he imeline o mee ing which has been e ised ( ide gaze e no i ica ion
da ed 31.03.2021, wi h ex ensions ending in Decembe 2024) along wi h compensa ion
o non-compliance. The d a NEP p oposes ha egula o s ecognise hese cos s and
allow hem o be eco e ed h ough a i s.
G eening o coal o co- i ing biomass pelle s blended wi h coal in TPPs in he sho o
medium e m has a dual impo ance o a ne educ ion o he g eenhouse gas (GHG) om
coal bu ning and cu ailmen o en i onmen al pollu ion due o bu ning o c op esidue.
India has been ha nessing biomass-based elec ici y gene a ion, using di e se eeds ock
like bagasse, ice husk, s aw, co on s alk, coconu shells, soya husk, co ee was e, ju e
was es, g oundnu shells, sawdus , e c, and has exceeded he a ge ins alled capaci y o
10GWs. The MoP, in 2017, no i ied “Biomass U ilisa ion o Powe Gene a ion h ough
Co- i ing in Pul e ised Coal Fi ed Boile s, and his was ollowed by CEA in 2018 issu-
ing an ad iso y “Technical Speci ica ion o Ag o Residue o Ag o Biomass based
Pelle s (Non- o e ied/To e ied) o Co- i ing in Coal Based The mal Powe Plan s.”
The Go e nmen o India (GoI) has made i manda o y o he mal powe plan s o use
a 5% blend o biomass pelle s andcoal, wi h a equi emen o inc ease he blend o 7%
wi hin wo yea s.The co- i ing policy will be in e ec o 25 yea s o ill he use ul li e
o he he mal powe plan , whiche e is ea lie . Biomass pelle s may ha e equi alen
calo i ic alue o ha o Indian coal, based on es ima es om he CEA. Howe e , he e
a e p esen ly some challenges ha should be add essed. The i s challenge is wi h he
bio-pelle supply chain – p oduc ion, collec ion, p ocessing, anspo a ion, and s o age.
Second, he dis ibu ed na u e o he biomass a ising om di e se ag o-clima ic egions
and hyd ology, soil, and c opping pa e ns could be a p oblem o pelle isa ion. Thi d, all
ypes o TPP echnology is no compa ible wi h biomass pelle co- i ing and he chemical
composi ion o he biomass (wi h high silica con en ) may also pose p oblems equi ing
TPP R&M o make i sui able. Ye , ano he challenge is he landed cos o pelle s com-
pa ed o coal p ices. Landed cos o bio-pelle s (3800 KCal/Kg) is Rs. 7193/MT, while
coal (3600KCal/Kg) is Rs. 4560/MT he e o e signi ican ly pushing up cos o powe .24
The ansi ion away om coal along he deca bonisa ion ajec o y may happen
o e decades, wi h some coal mines closing down in he sho - o-medium e m due
o exhaus ion o ese es, while o he s may ake a e y long ime. Simila ly, o e he
medium o long e m, once he economy has su icien ly de eloped and al e na e uel
India’s Ene gy T ilemma and Coal-based Powe Gene a ion 39
echnologies in he supply baske a e la ge enough o mee he demand equi emen s,
he su icien ly old, ine icien and cos ly coal TPPs will also be decommissioned. Such
closu es and decommissioning, whe he o e sho - o-medium e m o long e m, will
impac he li elihood and heal h o he communi y, c ea e social dis up ions, ad e sely
a ec physical and social in as uc u e, aise conce ns o epu posing he esou ces o
es o e en i onmen and ecosys em, and se e ely impac public inance. Repu posing o
e i ed coal TPPs may ha e an impo an ole in ha nessing eme ging ene gy echnolo-
gies like p oduc ion o hyd ogen, as he plan si e p o ides o land, wa e a ailabili y,
logis ics, and connec i i y. Wo k o ce can be eskilled, and epu posing could p o ide
an oppo uni y o ha nessing eme ging uels a a educed cos . A coal TPP could also
be used o sola ene gy de elopmen , as he elec ici y e acua ion in as uc u e is
also p esen and could be a sou ce o g een hyd ogen as well. Howe e , he ques ion
emains i he coun y has he necessa y p epa edness a p esen o close down coal
mines and decommission la ge-capaci y coal TPPs while ensu ing a jus ou come o
he en i onmen , land, labou and all dependen communi ies. While he ansi ion
canno happen in an ad hoc manne , a comp ehensi e closu e amewo k is missing.
The exis ing legal and egula o y mechanisms in India dealing wi h land, labou , en i-
onmen al, and inance issues a e no adequa ely equipped o add ess he issues o a
coal mine o powe plan decommissioning.25 While he ansi ion may ake mul iple
decades, i is impe a i e o immedia ely lay down a Jus T ansi ion amewo k and
ensu e i s implemen a ion (also see Appendix 5B).
O e he yea s, wi h as e and la ge deploymen o RE capaci y, conce n o g id
ins abili y has inc eased. Wind ene gy is la gely seasonal and he sola plan s peak in
he a e noon, bu bo h may no coincide wi h daily and seasonal sys em peaks. Wi h
massi e commi men s o RE, mainly sola and wind, made by he go e nmen o e he
coming decades, g id ins abili y will inc ease unless balancing and amping equi emen s
a e p esen in he sys em. Measu es ha will enable be e in eg a ion o enewables in o
he g id include o e coming conges ion issues in ansmission in as uc u e o enable
be e exchange o RE om su plus egion o de ici egions, ha ing esou ce adequacy
o balancing g id ins abili y a ising om in e mi en na u e o RE and co-o dina ed
scheduling and dispa ch a coun y le el in a de eloped powe ma ke . Amongs hese,
he mos impo an equi emen is o ha e esou ce adequacy o balancing, which can
bes be p o ided by ba e y and ene gy s o age sys ems (BESS). Ba e y sys ems could be
cha ging du ing sys em o -peak and supply ene gy du ing peak pe iods, bu comme -
cial iabili y and unce ain y a ound i s la ge GW scale adop ion emain. O he s o age
and lexible supply sys ems, like pumped hyd o p ojec s (PSP) – on and o - i e , hyd o
s o age sys em, and open cycle gas plan s could also p o ide he equi ed balancing and
amping p i ilege o he sys em ha ing la ge RE a iabili y. Howe e , he alling sha e o
hyd o gene a ion, sho age o domes ic gas, and expenses associa ed wi h PSP, he exis -
ing coal TPPs a e equi ed o p o ide he lexibili y o smoo hening he load cu e. The
lexibili y o a plan can be b oadly cha ac e ised by he echnical minimum a which he
plan can ope a e, pe missible amp-up and amp-down a es ha de ine he ime aken
by he plan o espond o demand, he numbe o imes he plan can be shu down and
es a ed, and s a -up ime o ime aken by a plan o s a om a no-load si ua ion.
Measu es o achie e hese ea u es o lexibilisa ion ypically include p ocedu al changes,
equipmen e o i s, and/o combina ions o bo h. A TPP mus be e o i ed wi h s eam
ex ac ion and he mal ene gy s o age ha allows o powe ou pu adjus men wi hou
changing i ing a e in a boile o ul il he ole o lexibilisa ion. In es men s owa ds his
40 Sambi Basu and Soumya P akash Nayak
should be allowed by he egula o o be eco e ed h ough he a i s and conside ed a
manda o y expense o he de elopmen o RE.
Finally, in he long un, clean coal echnologies (CCTs) and applica ion o coal
combus ion byp oduc s, which a e being p esen ly esea ched o b inging hem o he
le el o comme cial accep abili y, would be a ailable. CCTs educe he en i onmen al
impac o coal powe gene a ion by using coal mo e e icien ly o by emo ing undesi -
able pollu an s a e combus ion. Coal washing is he mos commonly p e alen CCT
in India ha can educe CO2 emission by 2–3% using washed coal ha ing 34% ash
coal as agains unwashed coal wi h 42% ash con en . Cos o washing is o se by
educed cos o anspo a ion o low ash coal, lowe plan ope a ion and main enance
cos , and highe powe gene a ion e iciency. While di e en app oaches o coal wash-
ing is well es ablished, o he CCTs include a a ie y o echnologies ha educe ai
emissions and o he pollu an s in elec ici y gene a ion. E icien coal echnologies like
ul a-supe c i ical, ad anced ul a-supe c i ical, in eg a ed gasi ica ion combined cycle
(IGCC), e c would be g adually in oduced o he gene a ion o elec ici y a com-
me cially accep able a es wi h ex emely limi ed emissions. O he CCTs ha a e being
explo ed o a long ime a e coal gasi ica ion and coal lique ac ion a he coal mines
o p oduce cleane and highly e icien uels. GoI has pu in place he Na ional Coal
Gasi ica ion Mission wi h he goal o 100MT coal gasi ica ion by 2030. Fu he , coal
gasi ica ion echnologies a e also as e ol ing o downs eam p oduc ion o hyd ogen
and chemicals like me hanol, ammonia, e c, and o combined cycle powe gene a ion.
Possibly he mos impo an CCT om he pe spec i e o coal use in powe gene a ion
is ca bon cap u e, u ilisa ion, and s o age (CCUS) echnology. CCUS, i comme cially
iable, p o ides immense oppo uni y o India wi h la ge coal ese es o con inue o
use coal and s a egically balance ene gy ilemma. Ca bon cap u e and s o age (CCS)
is he p ocess o emo ing CO2 om indus ial p ocesses such as powe plan s ha bu n
ossil uels. CO2 can be anspo ed and s o ed in unde g ound geological o ma ion o
he ca bon cap u ed can be used as a by-p oduc . P o o ypes o eme ging applica ions
o by-p oduc coal combus ion in powe plan s include p oduc ion o zeoli es om
ly-ash and ca bon nano- ubes om ca bon cap u e a e being de eloped o assess com-
me cial iabili y and applicabili y. Zeoli es ind use in de e gen , elimina ion o oxins
and ca cinogens, emo al o wa e pollu an s, ca aly ic c acking, p oduc ion o medical
oxygen, e c. Ca bon nano ubes ha e immense po en ial including applica ions in ene gy
s o age and space p og ammes.
Conclusion
Ene gy ansi ion in India, along a deca bonisa ion ajec o y, is augh wi h he chal-
lenge o ensu ing ene gy secu i y, access, a ailabili y, and a o dabili y as he economy
has o p io i ize i s g ow h and socio-economic de elopmen objec i es. While India has
commi ed o subs an ial powe gene a ion capaci y om non- ossil sou ces, coal will
con inue o domina e he ene gy landscape o mul iple decades due o uel secu i y, eli-
abili y, and cos ad an age. Besides, he challenges a e many o la ge-scale ha nessing o
enewable and non- ossil ene gy sou ces, e en wi h RE sou ces ha ha e achie ed com-
me cial ma u i y. In ac , non- ossil sou ces o ene gy can be qui e di y i he en i e supply
chain o hese less-pollu ing ene gy sou ces a e aced. Fo many o he RE sou ces ha a e
ex emely ma e ial in ensi e, India has nei he he esou ce con ol no p ocessing con ol
o e he supply chain. On he con a y, coal suppo s India’s de elopmen agenda sans he
India’s Ene gy T ilemma and Coal-based Powe Gene a ion 41
associa ed damage ha pollu ion om coal p oduc ion and combus ion causes. Fu he ,
in India, he socio-economic dependence o communi y, indus y, and go e nmen is e y
deep, and any ad hoc ansi ion away om coal will be economically, socially, and poli i-
cally dis up i e and unjus . Thus, accep ing ha India has o ead a sus ainable and en i-
onmen ally benign de elopmen ajec o y, i would be p uden o ind ways o use coal
o uel i s g ow h and de elopmen in an en i onmen ally less-pollu ing manne .
I is impo an o ecognise ha coal is no eplacing he less-pollu ing op ions like
RE, hyd o, nuclea , eme ging non- ossil sou ces like hyd ogen, e c. Ins ead, coal is mo -
ing owa ds a low ene gy use ci cula economy cha ac e ized by educe, ecycle, and
epu pose o ma e ials. The ole o (g eene and cleane ) coal is o coexis wi h al e -
na e uel o ms, p o ide suppo o acili a e g ea e pene a ion o VRE, and se e as
a b idge ene gy sou ce o pa e he way o mo e e icien echnology op ions. Soone ,
ou policymake s accep ha coal shall con inue o be India’s p ima y uel ene gising i s
jou ney owa ds becoming a de eloped coun y, he be e i will be o synch onise ech-
nology de elopmen , di ec in es men s and go e nmen expenses, design policies, and
plan implemen a ion amewo ks.
No es
1 Wo ld Ene gy Ou look 2022 (STEPS Scena io).
2 Powe sec o a Glance-2012-2022, CEA.
3 CEA; Execu i e Summa y on Powe Sec o ; Minis y o Powe ; Go e nmen o India; No embe
2022.
4 CEA. Repo on Op imal Gene a ion Capaci y Mix Fo FY2029/30. Janua y 2020
5 Ga g, Vibhu i; Renewable Ene gy In es men Su ges in India; IEEFA; June 2022; h ps://iee a
.o g / esou ces / enewable -ene gy -in es men -su ges -india (accessed 28-01-2023).
6 Powe Founda ion o India and Bloombe gNEF, Financing India’s 2030 Renwables Ambi ion,
June 2022
7 SECI and NVVN being manda ed o ac as Bid P ocess Coo dina o o ca y ou he e- e e se
bidding.
8 Compila ion o disco e ed p ice h ough compe i i e bidding. Va ious sou ces
9 h ps://asian -powe .com /powe -u ili y /in - ocus /sola -module -p ices -su ged -35 -amids -in la ed
-cos s - aw -ma e ials ; accessed on 15-12-2022.
10 h ps://me comindia .com /bcd - a o -sola -manu ac u e s/; accessed on 15-12-2022.
11 To illus a e, e en wi h he mos de e mined, delibe a e, and cos ly shi achie ed h ough
Ge many’s Ene giewende he shi away om ossil uels was an a e age decline o 0.3%/yea .
In 2000, when Ene giewende began, Ge many de i ed 83.7% o p ima y ene gy om ossil
uels ha in 2015 was 79.4%.
12 CEA, B oad S a us Repo o Unde Cons uc ion The mal Powe P ojec s, No embe 2022.
13 CEA, G ow h o Elec ici y Sec o in India om 1947-2022, June 2022
14 h ps://www .iea .o g /da a -and -s a is ics /cha s /a e age -age -o -exis ing -coal -powe -plan s -in
-selec ed - egions -in -2020; accessed on 16-01-2023.
15 Assuming Rs. 4 C o e/MW.
16 Recen ly, global coal p ices ha e been on an upwa d ajec o y due o geopoli ical ensions,
which ha e caused signi ican p ice luc ua ions.
17 h ps://www .bp .com /con en /dam /bp /business -si es /en /global /co po a e /pd s /ene gy -economics
/ene gy -ou look /bp -ene gy -ou look -2019 .pd (accessed on 28-01-2023)
18 MTOE: Million Tons o Oil Equi alen .
19 h ps://coal .go .in /si es /de aul / iles /2021 -01 /coal -demand -p ojec ions20052022 .pd (Accessed
on 21 No embe 2022).
20 h ps://www .li emin .com /indus y /ene gy /indias -coal -p oduc ion - o - ouch -900 -million - onne
- his - iscal - epo -11671701931819 .h ml; accessed on 16-01-2023.
21 h ps://www . eu e s .com /business /ene gy /india -asks -u ili ies -no - e i e -coal - i ed -powe -plan s
- ill -2030 -no ice -2023 -01 -30/.
48 Ti hanka Mandal
Disconnec be ween S a e and Cen e P io i ies: Physical Capaci y Addi ion o RE
Be ween 2010 and 2014, g ow h in he use o sola ene gy was 10%, which accele -
a ed o 17% (She y 2021) be ween 2016 and 2020 and hen u he o 22% by 20223.
While hese absolu e g ow h a es a e imp essi e, he challenge lies in how hey ha e
been achie ed. The e a e se en o eigh s a es in India which ha e he maximum sola
esou ces. The MNRE has alloca ed a ge s o each s a e o mee India’s goal o achie -
ing a capaci y o 175 GW o RE by 2022, wi hou consul a ions wi h espec i e s a e
go e nmen s. Mo eo e , many s a e go e nmen s had hei own policies wi h ega d o
sola ene gy independen o he MNRE alloca ions. Table 3.1 p o ides a compa ison
o a ge s alloca ed by he MNRE wi h he goals o capaci y addi ion adop ed by he
espec i e RE esou ce- ich s a es.
One o he easons o such di e gence in a ge s was compe ing p io i ies be ween he
cen e and he s a es. A 2018 news a icle s a ed ha he equi emen om Wes Bengal
o ins all 5 GW o sola powe by 2022 o be aligned wi h he na ional a ge was ejec ed
o icially by he CM, ci ing issues wi h he a ailabili y o land (Majumda 2018). In o he
sola esou ce-poo s a es, he a ge se by he MNRE simply did no make economic
sense o pu sue, and i was easie o pu chase RE om a ailable sou ces using exis ing
mechanisms (NITI Aayog; PWC, Deloi e 2017).
Policies a C oss-Roads
Be ween he announcemen o he a ge o 175 GW o RE by 2022 by he cen al go -
e nmen in 2014 and 2020, almos all s a es in India came up wi h hei own RE o
sola policies, demons a ing a poli ical alignmen owa ds RE adop ion, d i en by all-
ing p ices o sola gene a ion. Fa ou able impo policies, 100% FDI in sola indus-
ies de elopmen in India and o he such measu es ensu ed ha la ge olumes o sola
capaci ies we e added. Howe e , he dis ibu ion side, which was mainly con olled by
s a e agencies, saw inconsis encies. The cen al go e nmen ’s “open access” ules, such
as Feed-in-Ta i , Ne -me e ing, and Mus - un o highe RE up ake, we e seen by he
DISCOMs as hind ances o hei own e enue gene a ion.
The e o e, hey kep on inc easing c oss-subsidy su cha ges, banking cha ges, and
open-access cha ges o RE consume s, as he la ge issue o he inancial heal h o
DISCOMs (in e linked wi h highe RE p ocu emen ) was no add essed by he cen e.
I was le o he s a e go e nmen s o add ess he si ua ion. Schemes like UDAY we e
Table 3.1 Cen al alloca ion is-à- is s a e goals on sola in he con ex o 175 GW
In MW Ta ge se by MNRE S a e policy-based a ge
Maha ash a 22,000 7,000
Guja a 17,000 6,672
Ka na aka 15,000 7,400
Rajas han 14,000 6,200
Andh a P adesh 14,000 6,000
Madhya P adesh 12,000 3,600
Telangana 6,500 1,500
Sou ce: h ps://www .ni i .go .in /si es /de aul / iles /ene gy /Execu i e -Summa y .pd

Ene gy T ansi ion and Cen e–S a e P io i ies 49
loa ed ime and again, almos as a knee-je k eac ion, a he han a s uc u ed and sys-
ema ic app oach o add ess DISCOMs p oblems wi h managing inances. In addi ion,
he e is a need o e hink policies such as Feed-in-Ta i , Ne -me e ing, Mus - un e c.
in ligh o RE p ices ha ing allen enough o be a pa wi h ha o con en ional uels.
An ac i e cen al ole in his ega d could ha e c ea ed a si ua ion whe ein he inancial
heal h and RE up ake could be simul aneously add essed o he oubled DISCOMs.
I is o be no ed he e ha e en hough he s a e go e nmen did no con ol he
DISCOMs di ec ly, hey we e esponsible o appoin ing he DISCOMs o ice s. The
Regula o y Commissions passing o de s o aising a i s and su cha ges we e also
pa o he s a e go e nmen machine y. I is no su p ising hen o expec ha he
DISCOMS would ollow he lead o he s a e ene gy depa men s and s a e poli ical
in e es s. Thus, we see ha Maha ash a has he highes open-access su cha ge, and
o he RE esou ce- ich s a es, such as Ka na aka, Andh a P adesh, and Telangana ha e
also issued open-access su cha ges which wo k as disincen i es o consume s op ing
o RE.
A he cen al go e nmen le el, he e was a push o oo op sola h ough he
Roo op Sola Phase II p og amme, whe e DISCOMs a e he nodal agencies o imple-
men a ion. Wi h gene a ion p ices o new RE alling and he g ow h o oo op sola ,
he DISCOMs had o make way o consume s who op ed o ne -me e ing oppo uni-
ies. Implemen a ion o such schemes is augh wi h challenges such as paying back
he cus ome s and balancing he g id. No su p ise hen ha he DISCOMs eso ed o
delaying ac ics o gi ing pe missions and ins alling me es, al hough ha may no be
he only eason ha he adop ion o oo op sola has no g own. Acco ding o he exis -
ing ules, he DISCOMs ha e o pay penal ies o de ia ion, which could ( heo e ically)
happen due o mo e and mo e RE ge ing injec ed in o he sys em (CERC INDIA 2022).
Howe e , while he e is no cla i y a ound how hese penal ies would be adjus ed agains
incu ed cos s by he DISCOMs, he egula o s do no allow hem o pass he cos s on o
he consume s. The e could ha e been u he g ow h had he e been consume -cen ic
dis ibu ed RE policies pu in place.
E olu ion in Decision Making: Role o S a es and Cen al Go e nmen
As al eady discussed, du ing he decades o de elopmen p io o RE, he cen al go -
e nmen con olled he gene a ion and ansmission side o he sys em, while he s a e
go e nmen s managed dis ibu ion (Swain, Dubash and Bha ia 2019). In his amewo k,
he g ow h o he sec o was co- e minus wi h gigan ism – big dams, ul a-mega he mal
powe plan s, and mul i-c o e in es men s, all d i en by he cen al go e nmen . The
s a e go e nmen s, on hei pa , pu emphasis on g id expansion, some imes a he cos
o he s a e excheque (Kale 2014). These ends changed wi h he apid g ow h o RE
in ecen yea s, wi h s a e go e nmen s now in ol ed in gene a ion also, as e iden om
he ecen decla a ions on he s a e sola a ge s.
The unc ions o ins i u ions in he powe sec o a e also being “ e-imagined.” In he
ecen pas , he NTPC s a ed big sola p ojec in es men s (Min 2021). New ins i u ions
we e o med like he Sola Ene gy Co po a ion o India (SECI) o deal wi h he ende ing
p ocess and bidding o sola ene gy p ojec s. Olde ins i u ions, like he DISCOMs, we e
made he nodal agencies o he p omo ion o sola schemes (MNRE 2020), in addi ion
o hei oles in p ocu ing and dis ibu ing powe . These changes impac he balance
be ween he s a es and he cen e in powe sec o policymaking.
50 Ti hanka Mandal
A emp s o Squeeze he Space o S a es on Elec ici y-Rela ed Decision Making
One o he mos impo an challenges o he concu en na u e o policymaking in he
powe sec o is main aining he balance be ween he cen al go e nmen and he s a es.
Howe e , he apid g ow h o RE has a ec ed his o some ex en .
The Elec ici y Amendmen Bill 2022 (Bill) in oduced in he Pa liamen ecen ly is a
case in poin . I has sugges ed some undamen al changes, which expe s belie e will al e
he balance o powe be ween he cen e and he s a e. Fi s , he Bill sugges s he in o-
duc ion o a DISCOM anchise model ac oss s a es. This will eplace he cu en models
and will allow cus ome s o choose hei DISCOMs, in e ec in oducing compe i ion
o dis ibu ion. This is despi e pas expe ience whe e he idea o in oducing mul iple
DISCOMs has no succeeded in U a P adesh, Biha , and Madhya P adesh. In Odisha,
he no ion succeeded only in 2020 on he hi d a emp . Fu he , i p oposes a cen ally
adminis e ed body which will appoin egula o s o he S a e Elec ici y Regula o y
Commissions (SERC) ac oss he coun y. These would cu ail he decision-making powe
o he s a e as i would no be able o nomina e he SERC membe s independen ly. The
SERC would hen gi e p imacy o issues p omo ed by he cen al go e nmen a he han
hei s a es.
Second, unde he Bill, he Na ional Load Despa ch Cen e (NLDC) is being en isaged
as a body o schedule powe alloca ion o he s a es based on paymen s. While his was a
well-meaning a emp o sol e he issue o long-s anding dues om he DISCOMs o he
gene a o s, his a angemen is likely o cause unequal dis ibu ion o powe . Financially
ich s a es will ge powe a hei ime o need, while inancially poo s a es would be
likely o all in o he ap o indeb edness. Wi h his indeb edness, hei au onomy o
schedule and buy powe om he ma ke will be se iously cons ained.
Thi dly, while he c oss-subsidised consume s will emain unde he go e nmen -
owned DISCOMs and he c oss-subsidising consume s (indus y and comme cial) will be
pa o he p i a e DISCOMs. This will ine i ably pa e he way o s uc u al change in
he DISCOMs and in i e a i - ela ed al e a ions. Since he ex an Fiscal Responsibili y
and Budge Managemen Ac will ensu e ha subsidies o s a e go e nmen s don’
inc ease, he space o inancial au onomy is u he es ic ed o he s a e go e nmen s,
who would ha e o oo he bill o he consume s unde go e nmen DISCOMs.
A emp s o Reshape Decision-making in Powe Sec o
Apa om he Elec ici y Bill 2022, he e has been a cons an a emp o inke wi h he
balance o powe is-à- is s a e-le el elec ici y en i ies. The Ene gy Conse a ion Ac
2022 (amended ecen ly) p oposes a educed numbe o s a e go e nmen ep esen a-
i es is-à- is sha e o ep esen a i es om he cen al go e nmen . In such si ua ions, i
becomes easie o he cen e o push u u e di ec i es whe eas s a es migh see his as a
p oblem om hei pe spec i e.
The Ac also p oposes ha a ca bon c edi mechanism will be es ablished by he
Cen al Go e nmen , o eap he bene i s o domes ic ma ke s o emission educ ions.
While he e a e se e al ways o es ablish such mechanisms, he Ac emains silen on
wha hese could be and is aimed o c ea e a single mechanism o ca bon c edi ma ke s
in he u u e. This po en ially limi s he s a e go e nmen s o ake independen decisions
on which ma ke mechanism o ollow (Munjal 2022) based on hei own con ex s and
p io i ies.
Ene gy T ansi ion and Cen e–S a e P io i ies 51
The a emp is o cen alise he decision-making is e iden in he Elec ici y Bill 2022
and he Ene gy Conse a ion Ac 2022 wi h a iew o enhancing ene gy e iciency and
conse a ion. I appea s ha in he elec ici y sec o , he bigge and mo e o midable
long- e m impac ul decisions aken a he cen al le el in ecen imes o en ha e side-
lined and/o o e looked (some migh say enc oached) he s a es’ domain o decision-mak-
ing. The e o e, no only is he e a change in he echnology o gene a ion o elec ici y,
om ossil uel o RE-based esou ces, bu simul aneously, he s uc u es o concu en
policymaking a e also being inke ed wi h. Exis ing conce ns such as DISCOM inances,
s abili y o hese DISCOMs is-à- is iscal de ici o s a es, a i s e c. will be exace ba ed
wi h a highe up ake o RE, which is why any e o ms mus be backed by s a es’ con ex
and ha o he egion as well (Dubash and Rajan 2001) (Dubash, Kale and Bha i ka
2018). The cu en end o espass he decision-making domain o he s a es would lead
o u he weakening o he managemen o he sec o , a he han add essing he ex an
sys emic issues.
Conclusion
Recen de elopmen s a ound RE ha e dis up ed he powe sec o in India – physically,
s uc u ally, and ins i u ionally. The de ac o and de ju e al e a ion o cen e–s a e ela-
ionships ha exis ed o e he yea s a e buil on a na a i e o ushe ing in e iciency and
e ec i eness in he powe sec o while main aining he undamen al objec i es o he
sec o o imp o e accessibili y and a o dabili y.
These changes, which we e g adual ea lie , a e now accele a ing a he same pace as
he alling p ices o RE gene a ion in he coun y. Howe e , he e a e in lexion poin s
obse ed du ing his pe iod, in he o e all policies o he go e nmen , which o ces us
o conside he o iginal balance o decision-making powe s be ween he s a e and he
cen e. We demons a ed ha om he s andpoin o he s a es, he shi s ha ha e been
made in he policies o adop RE and scale i up we e less han op imal.
The huge subsidy bu den a ising ou o he ag icul u e sec o and he DISCOMs’
inancial loss a e he la ges sou ces o ine iciency in he elec ici y sec o . The app oach
o he Cen al go e nmen o ake cha ge o DISCOMs’ ope a ions and decision-making,
as i ha we e he oo -cause o ine iciency may be lawed. The issues a e deepe and
mo e complex. Nei he he cen e, no he s a e go e nmen s, ac ing alone, can sol e
hem. E en a e he e o ms and p oposed amendmen s, he conce ns ela ed o he
ag icul u e subsidy emain. While he cen e could ha e p o ided and se basic p inciples
o assessmen , i chose he cu en echnical ini ia i e o seg ega ing he eede s, bu his
mechanism is also p one o poli ical in luence.
In addi ion, policy measu es a ound making India’s ene gy mix mo e sus ainable mus
be upda ed o ecognise he cu en gene a ion cos s o RE and ake in o accoun ha
hey a e on a declining end. Mo e p agma ic policies will c ea e op ions o DISCOMs
o balance he issues like high-cos old RE-based PPAs and newe RE which a e low cos
o bundle. The e is also a need o design policies o e i ing ine icien and old he mal
powe plan s which con inue o ope a e due o PPAs obliga ions.
The social con ac o he powe sec o in India, ha is, p o iding a o dable powe
o he esiden ial and ag icul u e sec o while making powe accessible o indus y, and
comme ce is ad e sely a ec ed as we s i e pu ely o e iciency and b inging mo e RE
in o he ene gy mix. Due o he dis ibu ed na u e o RE, he na a i e has been ha
c oss-subsidy has been a disincen i e o indus ial and comme cial consume s, and hey
52 Ti hanka Mandal
choose o mig a e ou o he g id, he eby making he g id economically unsus ainable.
Ins ead, he dis ibu ed and low-cos na u e o RE mus be ha nessed o mee he needs
o he esiden ial and ag icul u e sec o , and he cen al go e nmen , oge he wi h he
s a es, could design policies o u ilise his a enue e ec i ely.
A p esen he implemen a ion plan o he o e a ching poli ical and economic goal
o deca bonise is oo cen alised. The impo ance o using he plu ali y and di e si y
o s a es in his jou ney canno be emphasised enough. While he ole o he cen e is
pa amoun , he s a e go e nmen s should no be le ou o he p ocess o planning and
s a egic hinking. Including hem could ha e a mul iplie e ec in mee ing he o e a ch-
ing goals ha he coun y has se o i sel .
No es
1 The da a suppo in his chap e has been p o ided by Abhina Sha ma who was ecen ly
awa ded his Phd om IIT Bombay
2 A maximum o eigh o nine s a es ha e high sola po en ial, mee ing o e 90% o he o al
sola ins alled capaci y in he coun y cu en ly, and h ee o ou s a es in he coun y mee
mos o he wind po en ial. Dis ibu ion o RE esou ces in India is highly skewed.
3 IEA, Wo ld Renewables and Was e Ene gy Supply, Ap il 18, 2023, Pa is, e ie ed om h ps://
www .iea .o g /da a -and -s a is ics /da a -p oduc / enewables -in o ma ion
Re e ences
Aga wal, Dh u ak, Ha sha V Rao, and Disha Aga wal. 2022. How Can DISCOMs Op imise
Powe P ocu emen Cos ? The Case o Delhi o Exi he Powe Pu chase Ag eemen wi h
NTPC Dad i S age-I. New Delhi: CEEW.
CERC India. 2022. Cen al Elec ici y Regula o y Commission. New Delhi, Ma ch.
Dubash, Na oz K, and Sudhi Chella Rajan. 2001. Poli ics o Powe Sec o Re o ms in India.
Washing on DC: Wo ld Resou ces Ins i u e.
Dubash, Na oz K, Sunila S Kale, and Ranji Bha i ka . 2018. “Mapping Powe in Compa i i e
S a e Con ex .” In Mapping Powe : The Poli ical Economy o Elec ici y in India’s S a es, by
Na oz K Dubash, Sunila S Kale, and Ranji Bha i ka . New Delhi: Ox o d Uni e si y P ess.
Gambhi , Ashwin, and Shan anu Dixi . 2018. Powe ing Ag icul u e ia Sola Feede s. Hindu
businessline, Decembe 20. h ps://www . he hind ubus inessline .com /opinion /powe ing
-ag icul u e - ia -sola - eede s /a icle25791629 .ece
Kale, Sunila S. 2014. Elec i ying India: Regional Poli ical Economies o De elopmen . S an o d:
S an o d Uni e si y P ess.
Khanna, Ashish, Dalji Singh, Mudi Na ain, and Ashwini K Swain. 2015. T ans o ming Elec ici y
Go e nance in India: Has India’s Powe Sec o Regula ions Enabled Consume s’ Powe ? Policy
Resea ch Wo king Pape No. 7275, Wo ld Bank, Washing on, DC h p://hdl .handle .ne /10986
/22009 License: CC BY 3.0 IGO.”
Majumda , A komoy Du a. 2018. “Bengal Go Won’ Chase Cen e’s 2022 Sola Ta ge .” Min ,
July 8.
Min . 2021. NTPC wins 1.9 GW sola powe p ojec con ac , Sep embe 26. Accessed Decembe
5, 2022. h ps://www .li emin .com /companies /news /n pc -wins -1 -9 -gw -sola -powe -p ojec
-con ac -11632652298331 .h ml.
MNRE. 2020. Minis y o New and Renewable Ene gy. New Delhi, Janua y 30.
Munjal, Diksha. 2022. The Hindu. Decembe 18. Accessed Janua y 13, 2023. h ps://www
. hehindu .com /news /na ional /explained -wha -a e -ca bon -ma ke s -and -how -do - hey -ope a e /
a icle66260084 .ece.
Na ayan, Subhash. 2019. “Go De ises Wa ehousing o Res uc u e Powe Sec o NPAs.”
Financial Ch onicle, Feb ua y 5.
Ene gy T ansi ion and Cen e–S a e P io i ies 53
NITI Aayog, PWC, Deloi e. 2017. S a e Renewable Ene gy Capaci y Addi ion Roadmap. New
Delhi: NITI Aayog.
Ramana han, A R. 2001. “Ra ionalising Elec ici y Ta i s.” Economic and Poli ical Weekly
1508–1510.
Ramesh, M. 2022. Sola isa ion o Ag icul u e h ough Feede Sepa a ion. Hindu businessline,
Sep embe 8. h ps://www . he hind ubus inessline .com /specials /clean - ech /sola isa ion -o
-ag icul u e - h ough - eede -sepa a ion /a icle62199010 .ece
Regy, P ashan h, Rakesh Sa wal, Clay S agne , Ga e Fi zge ald, Jagaban a Ning houjam, A jun
Gup a, and Nu odi a Singh. 2021. Tu ning A ound he Powe Dis ibu ion Sec o : Lea nings
and Bes P ac ices om Re o ms. New Delhi: NITI Aayog; RMI.
She y, Sangee a. 2021. “India’s Sola Ene gy Ma ke Ou look 2022.” Sola Qua e , Decembe .
Smi h, Thomas B. 1993. “India’s Elec ic Powe C isis: Why Do he Ligh s Go Ou ?” Asian Su ey
Vol. 33(4), 376–392.
S ini asan, Ganesh. 2022. A Na a i e o he Indian Powe Sec o since Independence.
ET-Ene gywo ld, Augus 16. h ps:/ /ene gy .economic imes .india imes .com /news /powe /opinion
-a -na a i e -o - he -indian -powe -sec o -since -ind ependence /93580873
Swain, Ashwini, Na oz K Dubash, and Pa h Bha ia. 2019. “The Dis up i e Poli ics o Renewable
Ene gy.” The India Fo um, May 22.
Tongia, Rahul. 2003. The Poli ical Economy o Indian Powe Sec o Re o ms. P og am on Ene gy
and Sus ainable De elopmen , Wo king Pape #4, Cen e o En i onmen al Science and Policy,
S an o d Ins i u e o In e na ional S udies, S an o d Uni e si y, S an o d, CA. h ps:/ /pesd . si
.s an o d .edu /publica ions /poli ical _economy _o _indian _powe _sec o _ e o ms _ he

4
In oduc ion
The IPCC has ecommended phasing ou coal-based powe plan s, hence ansi ioning
away om coal. The implica ions o he coal ansi ion will be di e en o di e en
coun ies. The impo ance o coal in he Indian economy is undeniable – i supplies 44%
o India’s p ima y ene gy demand (which is up om 33% in 2000) (IEA, 2021). India
accoun s o 7.1% o o al emissions and has 17.7% o he global popula ion. The pe
capi a emissions o he coun y s and a 2.47 TCO2e compa ed o he global a e age o
6.45 TCO2e (Joshi and Mukhopadhyay, 2022). Emissions om coal ha e isen om
500 MT in 2005 o 1000 MT in 2015.
The sha e o coal in he ene gy mix has no changed since 2015, bu India has added
58 GW o coal he mal capaci y be ween 2015 and 2019 (compa ed o 49 GW o sola
and wind) (IEA, 2021). No only is coal an impo an sec o o indus ial ac i i y, bu
i is also used as p ima y ene gy in many indus ies. Many li elihoods a e di ec ly and
indi ec ly associa ed wi h coal. Coal is also linked o egional de elopmen and con ib-
u es o he build-up o anspo in as uc u e (pa icula ly ailways) his o ically. This
chap e links wi h he o he chap e s in he olume, o example, Chap e 3 by Mandal
on cen e–s a e p io i ies and alignmen o policies and se e al o he chap e s (also see
chap e s 5 and 10) ha add ess Jus T ansi ion.
The chap e is o ganised in he ollowing manne : in Sec ion 2, we discuss he mac o-
economics o he coal ansi ion in he Indian con ex wi h a ocus on some key mac o-
economic a iables like GDP, e enue, esou ces, and li elihood. Sec ion 3 discusses he
impo ance o coal o he Indian indus y. The spa ial dimension o he coal ansi ion is
discussed in Sec ion 4. In Sec ion 5, we b ie ly discuss he cos s o phasing ou coal and
b inging in enewables and Sec ion 6 concludes.
Sec ion 2: Mac oeconomic Implica ions o Coal T ansi ion
Table 4.1 p o ides a snapsho o he impo ance o coal o India, in e ms o p oduc ion,
consump ion, ese es, and impo s. As is e iden om he able, in e ms o p oduc ion
and consump ion, India anks second in he wo ld. In e ms o coal ese es, i is i h in
he wo ld. Despi e his, India needs o impo coal (mainly non-coking coal). We discuss
his below. Elec ici y gene a ion om coal powe plan s s ood a 71.3% o o al gen-
e a ion in 2019–2020. Coal accoun s o 55% o he coun y’s ene gy needs (Economic
Su ey 2020–2021). Many o he sec o s o he Indian economy, di ec ly o indi ec ly,
a e dependen on coal (Deshmane, 2021).
4
Mac oeconomic Impac s o Coal
T ansi ion
Saon Ray, Piyali Majumde , and
Vasundha aThaku
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-6
10.4324/9781003433088-6
Mac oeconomic Impac s o Coal T ansi ion 55
Mac oeconomic Impac s o Coal
T ansi ion
GDP
The impo ance o mining and coal o he Indian economy is undeniable. The con ibu-
ion o coal and ligni e is 0.7%. All India’s coal p oduc ion in he yea 2021–2022 egis-
e ed a g ow h o 8.6% compa ed o he le el o p oduc ion in he yea 2020–2021. Coal
p oduc ion inc eased o 778.19 million onnes (MT) in 2021–2022 om 716.08 MT in
he yea 2020–2021.
O e he las en yea s, coal en s ( he di e ence be ween he alue o bo h ha d and
so coal p oduc ion a wo ld p ices and hei o al cos s o p oduc ion) con ibu ed on
a e age 0.9% o India’s o al G oss Domes ic P oduc (GDP) indica ing i s impo ance
in he economy. This is shown in Figu e 4.1.
Re enue
India’s coal dependence is also e lec ed in he iscal aspec wi h coal being a sou ce o
go e nmen e enues ( axes and oyal ies) (Deshmane, 2021).
Coal India L d. (CIL) p oduces 83% o coal in he coun y (Minis y o Coal (2020)
Annual Repo 2019–2020). CIL accoun ed o 80% (622.63 MT) o he o al coal p o-
duc ion in India in he yea 2021–2022. Singa eni Collie ies Company Limi ed (SCCL) is
one o he majo sou ces o coal in he sou he n egion o he coun y accoun ing o 50.6
MT o coal p oduc ion in he yea 2021–2022. O he companies like TISCO, IISCO, and
DVC a e con ibu ing e y small quan i ies o he o al p oduc ion o coal in India. Fo
Indian Railways, coal cons i u es 44% o i s eigh e enue. 87% o coal is anspo ed
by he Indian Railways (Tongia and G oss, 2019).
Table 4.1 Coal s a is ics
Pa ame e Value Rank in he wo ld Sha e in wo ld
Coal p oduc ion 728.7 MT (in 2018-19) 2nd 9.5% (in 2017)
Coal consump ion 968 MT (in 2018-19) 2nd
Coal ese es 326.5 billion onnes 5 h
Coal impo s 235.2 MT (in 2018-19)
Coal- i ed powe plan s 208 GW 3 d 10%
Sou ce: Compiled by Au ho s om a ious sou ces.
No e: Coal p oduc ion da a om IEA 2021. Coal sha e pe cen and coal ese es om Indian Bu eau o Mines
(2019) Indian Mine als Yea book, Coal and Ligni e. Coal consump ion da a om h ps://www .ca bonb ie .o g
/ he -ca bon -b ie -p o ile -india. Coal impo s da a is om Bhushan e al. (2020) Jus T ansi ion in India. Da a
on coal- i ed powe plan s a e om he Minis y o Powe (2021). Da a on he sha e o coal- i ed powe plan s
a e om h ps://endcoal .o g /global -coal -plan - acke /
Table 4.2 Emissions om coal o India
Emissions ( o al)
Emissions (pe capi a) 2.47 onnes o CO2 equi alen 7.1%
Sou ce: Compiled by Au ho s om a ious sou ces.
No e: Da a o emissions and da a om emissions pe capi a om IEA (2021).
56 Saon Ray, Piyali Majumde , and Vasundha a Thaku
Bhanda i and Dwi edi (2022) documen ha he e a e 16 axes (combining Cen al
and S a e le els) ha a e imposed on coal. These include excise du y, clean ene gy cess,
oyal y, and con ibu ion o he dis ic mine al und (DMinF). Coal mining oyal ies a e
14% o he basic p ice, while he Na ional Mining Explo a ion Tax (NMET), which is
cha ged o unding explo a ion by s a e go e nmen s, is 2% o he oyal y. The paymen
o he go e nmen om CIL in 2020–2021 included Rs. 96.9 billion as oyal y, Rs. 29.9
billion as DMinF, and Rs. 2.1 billion as NMET. The o al was Rs. 419.9 billion including
Rs. 225.1 as GST compensa ion cess.
Rese es
Da a on o al assessed geological coal esou ces as on 01.04.2021 is 352,125.97 million
onnes (Minis y o Coal, 2022). India has he i h-la ges coal ese es in he wo ld a e
he Uni ed S a es o Ame ica, Russia, Aus alia, and China.
Impo s
India is one o he la ges impo e s o coal in he wo ld. Indonesia, Aus alia, and Sou h
A ica cons i u ed 34%, 31%, and 12% o he o al impo o coal in o India in he yea
2021–2022, espec i ely. Despi e inc eased domes ic p oduc ion, coal powe plan s and
i on and s eel manu ac u ing companies in India a e also engaged in he impo o coal
la gely om Indonesia, Sou h A ica, and Aus alia (Powell e al., 2022).
India’s impo o coal has declined by 10.8% o e he las h ee yea s i.e., 234.35
MT in 2018–2019 o 208.93 MT in 2021–2022. Non-coking coal cons i u es he bulk,
app oxima ely 70% o he o al coal impo ed in o India. Impo ed high-quali y coal
is majo ly used o indus ial uses. In 2018–2019, acco ding o he annual su ey o
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0
100
200
300
400
500
600
700
800
2017-18 2018-19 2019-20 2020-21
COAL RENT (% OF GDP)
DOMESTIC PRODUCTION AND IMPORT (IN
MILLION TONNES)
YEAR
Domes ic P oduc ion, Impo and Coal Ren
To al Domesc P oducon To al Coal Impo Coal Ren (%GDP)
Figu e 4.1 Domes ic p oduc ion, impo , and coal en om 2017–2018 o 2020–2021.
Domes ic P oduc ion and Impo da a om Minis y o Coal. Coal Ren (%GDP) da a.
Sou ce: Wo ld De elopmen Indica o s (WDI).
Mac oeconomic Impac s o Coal T ansi ion 57
indus ies da a, he in ensi y o use o impo ed coal is ound o be high in chemical p od-
uc s manu ac u ing and manu ac u ing o coke o en p oduc s.
P ima y Ene gy Needs
Coal is he mos easily a ailable and a o dable sou ce o ene gy in India accoun ing o
55% o he o al ene gy demand. T ansi ioning away om coal will ha e implica ions
o he economy. Coal is used as a uel in indus y and o he sec o s. Despi e he g ow h
in enewables, coal domina es India’s powe gene a ion mix, and will accoun o a la ge
p opo ion o powe sec o emissions e en by 2040 (IEA Da a Se ices). Acco ding o
p ojec ions, enewable ene gy consump ion can su ge om nea ly 20 M oe in 2019 o
nea ly 300 M oe by 2040 bu will be concen a ed mainly in he powe sec o and d i en
by g ow h in sola capaci y (BP, 2022).
Li elihoods
The e a e also implica ions o li elihoods and jobs as we ansi ion away om coal.
Fi een million people a e di ec ly o indi ec ly employed in his sec o . The coal sec o
di ec ly accoun s o he employmen o 1.2 million wo ke s in India (Pai and Ze i i,
2021). Fu he , he impac alls disp opo iona ely on he mos ulne able membe s o he
wo k o ce as is illus a ed in he Appendix 4B on he Ko a Supe The mal Powe S a ion.
Gi en he dependency o he Indian economy on coal, phasing ou coal and ansi ion-
ing o al e na i e/ enewable ene gy sou ces o a o dable powe gene a ion and i s use
in a ious o he p ocesses, he eby sus aining li elihoods o all is a he culean ask o
he policymake s. Especially, he majo coal-p oducing s a es – Jha khand, Chha isga h,
and Odisha – may ind i challenging o implemen he s uc u al change and gene a e
jobs in he al e na i e sec o s.
Regional De elopmen
Coal is also linked o egional de elopmen and con ibu ed o he build-up o anspo
in as uc u e (pa icula ly ailways) his o ically (O Rou ke and Williamson, 2001). The
egional and spa ial dimensions o he impo ance o coal ha e been documen ed (e.g. o
B i ain by Tu nbull (1987) and also egions like Pennsyl ania by La zko (2011)).
Emissions
Coal-based powe plan s a e one o he majo con ibu o s o he ising concen a ion o
PM 2.5 in he ai and he emission o o he ha m ul gases in o he a mosphe e. Global
coal use con inued ising o he second consecu i e yea in 2018 wi h China, India,
Indonesia, and some o he Sou h and Sou heas Asian coun ies, as he main consume s.
While India con ibu es o 7.1% o o al emissions globally, in pe capi a e ms India
con ibu es a less han mos majo de eloped coun ies.
Acco ding o he In e na ional Ene gy Agency (IEA), cu en ly, India’s pe capi a
emissions a e 1.6 onnes o CO2, much lowe han he global a e age o 4.4 onnes
and India’s sha e o global o al CO2 emissions is only 6.4%. In he mid-1990s, India’s
ca bon in ensi y o consump ion had su passed ha o China and was abou one- hi d
highe han China’s by 2005 (Bi dsall and Sub amanian, 2009). India’s coal consump-
ion is also expec ed o g ow a a as e a e han Chinese coal consump ion be ween
64 Saon Ray, Piyali Majumde , and Vasundha a Thaku
as depic ed in Figu e 4.4 . Con as ingly, i is e iden om Figu e 4.4e) ha enewable
ene gy sou ces a e dispe sed ac oss he s a e.
Renewable ene gy sou ces (including sola , hyd o, biomass, and was e- o-ene gy) con-
s i u e 3% o he o al ins alled ene gy capaci y in Chha isga h. Biomass powe plan s
ha e he po en ial o educing CO2 and p esen ly he e a e 13 such plan s in Chha isga h
wi h a o al ins alled capaci y o 274 MW. The Chha isga h S a e Renewable Ene gy
De elopmen Agency (CREDA) has allowed o he exemp ion o elec ici y du y o he
sola powe -gene a ing plan s o auxilia y consump ion o cap i e consump ion wi hin
he s a e ill he yea 2027. Mo eo e , as a pa o he Sola Policy, i has been emphasised
ha along wi h acili a ing he ins alla ion o sola powe p ojec s h ough single win-
dow clea ance, imp o ing oad connec i i y, and c ea ing he land bank, he s a e go e n-
men will also be engaged in he de elopmen o human esou ces h ough ins i u ional
Sahibganj
Koda ma
Godda
Paku
Gi idih
Palamu Cha a
Haza ibagh
De gha Dumka
Jam a a
Dhanbad
La eha
Loha daga
Ga hwa
Ranchi
Boka o
Ramga h
Gumla
Khun i
Pashchimi
Singhbhum
Sa aikela
Kha sawan
Simdega Pu bi
Singhbhum
Coal Powe Plan s
Biomass Powe plan s
Small Hyd o Powe plan s
Sola Powe Plan s
Cap i e coal Mines
Unde g ound Mines
Open Cas Mines
Mixed Mines
( )
Figu e 4.4 Dis ibu ion o coal mines.
Sou ce: Ene gy map, Ni i Aayog.

Mac oeconomic Impac s o Coal T ansi ion 65
aining o he al e na i e ene gy adap a ion. The de ailed dis ic -wise ins alled capaci y
o enewable ene gy sou ces is depic ed in Table 4.A.2 o he Appendix o he Chap e .
Financing he Coal T ansi ion
“By 2025, 78 pe cen o coal plan s globally will be mo e expensi e o ope a e han
building new enewable ene gy wi h s o age” (G busic e al., 2019). This obse a ion is
u he suppo ed by he waning iabili y o coal plan s (G busic e al., 2019; Wang e
al., 2022).
While he e a e push ac o s o he ansi ion such as he declining iabili y o coal
plan s, he e a e also pull ac o s o ansi ion. These pull ac o s a e he ones making
he ansi ion a ac i e. One o hese pull ac o s is he ne gain o be eaped as a esul
o he ansi ion. Ad ian e al. (2022) es ima e he cos s o implemen ing his ansi ion
and hey ind a ne gain esul ing om his ansi ion. Thei es ima es peg a ne gain o
a ound $78 illion due o phasing ou coal.
Calhoun e al. (2021) unde sco e i e p inciples o designing inancing mechanisms
o a oiding he isk o using inance o inancing he coal ansi ion. These i e p inciples
a e as ollows: “Jus and equi able; Addi ional; Managed; T ans o ma ional; Scalable.”
Sha an and Sa an (2021) no e inance as he key ac o o acili a ing he ansi-
ion away om coal and mo ing owa ds g een sec o s o India. Singh and Sha ma
(2021) es ima e he cos o decommissioning 130 powe plan s accoun ing o 95 GW
o ins alled capaci y. They use a i o de s o indi idual plan s o calcula e he cos s o
decommissioning. The cos s a e es ima ed o be be ween Rs. 2.31 lakh c o es o Rs. 3.50
lakh c o e, while he pay-ou o wo ke s is es ima ed a Rs. 57,490 c o es.
Coal subsidies we e a Rs. 150 billion in 2020. Coal has been b ough unde he ambi
o 5% GST plus a compensa ion cess o Rs. 400 (Bhanda i and Dwi edi, 2022).
Conclusion
India has announced i s in en ion o deca bonise i s economy and become ne ze o by
2070. Gi en he impo ance o coal in India’s ene gy mix, he mac oeconomic implica-
ions o deca bonisa ion will be eno mous. The objec i e o his chap e was o examine
he implica ions o his ansi ion o India, in e ms o b oad mac oeconomic indica-
o s.India’s possible gains om he ansi ion o a ne ze o-ca bon g ow h pa h could
be signi ican . Howe e , he e will be di ec and indi ec impac s o he ansi ion on he
economy. Many sec o s in India a e di ec ly o indi ec ly connec ed o coal; hese sec o s
a e likely o be a ec ed as well. In his chap e , we examine all such linkages wi h coal
and unde line he spillo e e ec o he ansi ion in o o he sec o s. Also, li le a en ion
has been paid o examining he spa ial dimension o he ansi ion p ocess ac oss Indian
s a es. The p esen chap e a emp s o s udy he de ailed ene gy composi ion o he wo
majo coal-p oducing s a es o India iz. Jha khand and Chha isga h. Fu he , i also
ies o iden i y he po en ial al e na i e ene gy sec o s ac oss hese wo s a es. As we see
om he ensuing discussion, many ac o s will con ibu e o he ansi ion o each s a e
– mos o hese ac o s a e well-known and documen ed (including he esou ce base,
he opog aphy, o o he ac o s like whe he powe is su plus o no ). Two ac o s ha
ha e o be kep in mind and a e no equen ly discussed include he linkage o coal in he
economy o he s a e and he poli ical economy o each s a e. Fo he o me , his chap e
has ied o gi e an o e iew o he di e ences be ween he wo s a es ha ha e been
66 Saon Ray, Piyali Majumde , and Vasundha a Thaku
discussed in he pape . Mo e esea ch is needed o ex ica e he linkages since only hen
he ue impac o he ansi ion can be cap u ed. The poli ical economy ac o is beyond
he scope o his p esen chap e , bu ex an li e a u e can be e e ed o shed ligh on his
aspec o i will de e mine he pa h o he ansi ion in each s a e.
Re e ences
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Mac oeconomic Impac s o Coal T ansi ion 67
Table 4A.1 Jha khand: Dis ic -wise ins alled capaci y o enewable ene gy-based powe
plan s
Ins alled capaci y in MW
Dis ic Sola Wind Small hyd o(<25MW) Biomass Was e o ene gy
Dhanbad 0 0 0 3.1 (2) 0
Ramga h 0 0 4 (1) 1.2 (1) 0
Ranchi 31.9 (9) 0 0 0 0
Paschimi Singhbhum 3 (1) 0 0 0 0
No e: Numbe s in he pa en heses indica e he numbe o plan s.
Sou ce: h ps:// edas .sac .go .in /ene gymap / iew /powe gis .jsp
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Coun y Case S udies. Wo ld De elopmen Pe spec i es, 24, 100368.
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Pape 7.
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Uni e si y, Shanghai and SOAS Uni e si y o London.
Appendix 4A
RE Powe Ins alled Capaci y in Jha khand and Cha isga h
68 Saon Ray, Piyali Majumde , and Vasundha a Thaku
Appendix 4B
T ansi ion Impac on Wo k o ce: A case s udy o Ko a
Supe The mal Powe S a ion (KSTPS)
Sim an G o e and Naini Swami
The Ko a Supe The mal Powe S a ion (KSTPS) was es ablished in 1983, wi h
wo uni s o 220 MW capaci y each. Owned by Rajas han Rajya Vidyu U padan
Nigam Limi ed (RVUNL), he powe s a ion has a cu en capaci y o 1240 MW
wi h se en uni s in ope a ion. The plan ’s a e age age is 27 yea s as o Ma ch 2022.
Uni s 1, 2, 3, and 4 a e pas hei use ul li e o 25 yea s, and hey a e p oposed o
decommissioning a e Decembe 2022.
O e he yea s, KSTPS has been among he key d i e s o he g ow h o he
local economy. The plan c ea es di ec employmen and ansac s wi h many asso-
cia ed businesses and se ice p o ide s. I acili a es a h i ing ecosys em o allied
li elihoods, such as local anspo , eal es a e, and consume goods and se ices,
p ima ily helmed by local small businesses. The powe s a ion is deeply in eg a ed
wi h he local economy. This includes ull- ime employees o RVUNL, con ac ual
employees and labou , se ice p o ide s, big and small business owne s, and a ious
in o mal wo ke s in he uno ganised sec o .
Table 4A.2 Chha isga h: Dis ic -wise dis ibu ion o enewable ene gy–based powe plan s
Dis ic Sola Wind Small hyd o (<25 MW) Biomass Was e o Ene gy
Ko ba 0.4 (7) 0 7 (1) 0 0
Su ajpu 0 0 0 16 (2) 0
Su guja 0.1 (2) 0 24 (2) 0 0
Bilaspu 3.8 (52) 0 1 (1) 18 (2) 0
Raiga h 5.1 (9) 0 0 37 (3) 0
Baloda Baza 18.9 (3) 0 0 7.5 (1) 0
Janjgi -Champa 0.3 (3) 0 0 49.8 (4) 0
Mungeli 3.8 (52) 0 1 (1) 18 (2) 0
Kabi dham 0.3 (5) 0 0 20 (2) 0
Beme a a 50.2 (3) 0 0 0 0
Du g 87 (44) 0 0 8 (1) 0
Raj Nandgaon 5.7 (16) 0 0 11.5 (2) 0.3 (1)
Balod 0 0 0 3 (1) 0
Kanke 0.3 (7) 0 0 0 0
Na ainpu 0.1 (2) 0 0 0 0
Bas a 0.4 (7) 0 0 0 0
Bijapu 0.1 (2) 0 0 0 0
Dan ewa a 0.8 (2) 0 0 0 0
Sukma 0.1 (1) 0 0 0 0
Dham a i 0.3 (5) 0 11 (3) 8 (1) 0
Ga iyaband 0 0 7 (1) 0 0
Mahasamund 37.2 (7) 0 0 16.5 (2) 0
No e: Numbe s in he pa en heses indica e he numbe o plan s
Sou ce: h ps:// edas .sac .go .in /ene gymap / iew /powe gis .jsp#
Mac oeconomic Impac s o Coal T ansi ion 69
The a o emen ioned li elihood landscape encompasses many ma ginal wo ke s
and g oups. Unde s anding hei ulne abili ies in he con ex o ene gy ansi ion,
pa icula ly epu posing (including decommissioning) he he mal uni s, equi es a
nuanced unde s anding o ulne abili ies a he in e sec ion o cas e, class, gende ,
and employmen loca ion.
KSTPS and Li elihoods Landscape
Fo a quali a i e unde s anding, li elihoods dependen on he plan a e classi ied
based on he s a u o y esponsibili ies KSTPS bea s owa ds espec i e indi idu-
als o en i ies. This includes di ec li elihoods (pe manen and con ac ual wo k-
e s), associa ed li elihoods (en i ies exchanging goods and se ices, including
he ly-ash b ick indus y and i s wage wo ke s), and allied li elihoods (in o mal
wo ke s and o he local businesses ha h i e on he economic con ibu ion o
KSTPS).
In e ms o o ganisa ional s uc u e conce ning di ec li elihoods, KSTPS is
di ided in o 15 adminis a i e depa men s. O icials ( he plan 's pe manen
employees) o e see he wo k ca ied ou by he pe manen and con ac ual wo k-
e s in hei espec i e depa men s. P esen ly, KSTPS has a ound 656 pe manen
employees and 2012 con ac ual wo ke s (Bask Resea ch 2022). Wi h he inc ease
in hei numbe s o e ime, he con ac ual wo ke s also pe o m asks p e iously
ese ed solely o pe manen echnical wo ke s. Despi e he simila na u e o hei
wo k, he e is a high wage dispa i y be ween pe manen and con ac ual wo ke s.
The e is also conside able he e ogenei y among con ac ual wo ke s based on hei
wage ca ego ies: skilled, semi-skilled, o unskilled. B oadly, he asks pe o med
by he plan 's labou all in o ci il, elec ical, and mechanical wo ks. Mos skilled
wo ke s a he plan a e engaged in elec ical wo ks, whe eas p ima ily semi-skilled
and unskilled wo ke s a e in ol ed in ci il and mechanical wo ks.
The Fac o ies Ac classi ies powe gene a ion plan s as an indus y in ol ing
haza dous p ocesses because o he pe ilous na u e o he wo k in ol ed. Howe e ,
wo king condi ions and exposu e o haza ds di e as pe he loca ion o wo ke s
inside he plan . The plan ’s boile and u bine managemen si es en ail wo king in
p oximi y o high empe a u es and hea y machine y. Loss o li e and limb due o
acciden s is common a such si es. Gi en he p esence o high- ol age powe ope a-
ions, elec ical wo k a he plan is c i ical, albei no physically axing. In con-
as , wo k a he coal handling ope a ions ha deploy he highes concen a ion o
unskilled con ac ual wo ke s is highly s enuous. Wo ke s in he depa men a e
con inually exposed o coal dus and a poo wo k en i onmen wi hou adequa e
cooling acili ies. As a esul , skin diseases and de e io a ion (and e en ual loss) o
eyesigh a e epo ed as ou ine consequences.
In he con ex o he associa ed li elihoods, he condi ion o he ly-ash indus-
y wo k o ce is pa icula ly conce ning. P olonged exposu e o ly ash is known
o inc ease he isk o as hma, in lamma ion, espi a o y diseases, and cance . The
indus y wo ke s epo a equen occu ence o many such heal h conce ns. A
majo i y o he wo k o ce (mos ly daily wage labou ) in he ly-ash indus y is

70 Saon Ray, Piyali Majumde , and Vasundha a Thaku
in o mal, and he sec o is uno ganised, gi en he small size o he ly-ash b ick-
making uni s. As a esul , sa e y p o isions o wo ke s in he uni s a e poo ly
implemen ed o absen , and no social secu i y is p o ided o cope wi h he heal h
consequences o hei wo k.
Vulne abili y o Wo k o ce and Po en ial Impac o KSTPS Closu e
India's labou ma ke , shaped by subs an ial and p ocedu al aspec s o labou
laws, acco ds di e en ial employmen s a us o pe manen and con ac ual wo k-
e s, signi ican ly limi ing igh s and en i lemen s o he la e ca ego y o wo ke s.
Con ac wo ke s accoun o nea ly 75% o he wo ke s employed in he he mal
powe gene a ion sec o (Bask Resea ch 2022). This p incipal sec ion o he wo k-
o ce is inhe en ly mo e ulne able in he con ex o epu posing o an associa ed
he mal powe plan and he po en ial loss o employmen .
In gene al, wo k o ce composi ions a e di e se, comp ising indi iduals wi h
di e en ia ed skills, capabili ies, and socio-economic backg ounds. The legal clas-
si ica ion o skilled, semi-skilled, and unskilled wo ke s is a commonly used s a i-
ica ion o he con ac ual wo k o ce.
Howe e , his s a i ica ion, which p ima ily signi ies wage di e ence, doesn’
ully ep esen he di e en ial capabili ies o wo ke s ac oss espec i e skill
g oups.
A meaning ul unde s anding o he capabili ies o wo ke s o deal wi h employ-
men loss may be ga he ed by measu ing (o mapping) some o he undamen al
ac o s ha shape hei oppo uni ies and p o ide ools o esilience agains he
impac o employmen loss. Thei capabili ies and hence esilience o deal wi h he
s ess o li elihood loss in he con ex may be explo ed as a unc ion o hei inhe -
en capi als, ha is, economic, human, social, and poli ical capi al. The esul ing
capabili ies and esilience o a wo ke (and hei household) a e likely o de ine
hei abili y o deal wi h he loss o li elihood, na iga e i s pe ils, and ul ima ely
seek oppo uni ies o income subs i u ion.
Using he abo e app oach, he able below p esen s a quali a i e mapping o
he di e en o ms o capi al o he skilled, semi-skilled, and unskilled con ac-
ual wo k o ce a KSTPS, along wi h wo ke s o he associa ed ly-ash b ick indus-
y. The pa ame e s used o e alua ing economic capi al include cu en income
sou ces, asse s, sa ings, and c edi access. Human capi al is e alua ed based on
educa ional and p o essional quali ica ions, skill le el, well-being, and occupa ion
co- ela ions. Social capi al is de ined as a unc ion o cas e posi ion and ela ed
ne wo ks, neighbou hood, and communi y ela ions. Poli ical capi al is e alua ed
based on he deg ee and na u e o pa icipa ion in local poli ics and associa ions,
including engagemen s h ough labou unions.
A quali a i e mapping o capi al c oss he landscape o pa icula ly ulne able
wo ke s associa ed wi h he mal powe plan s
Mac oeconomic Impac s o Coal T ansi ion 71
Ca ego y o
wo ke s
Economic capi al Human capi al Social capi al Poli ical capi al
Skilled
(mechanic
i e ,
elec ician,
ligh and
hea y
ehicle
d i e s,
ope a o s,
supe iso s)
Minimum daily wage o
Rs. 283 as speci ied by
GoR.
• Be e posi ioned o
access oppo uni ies
o addi ional income
h ough o he means o
li elihood such as small
shops, wo king in o he
indus ies.
• Indica e a highe deg ee
o asse owne ship,
including houses and
ligh weigh ehicles.
• Insu ed unde he ESI
scheme.
• EPF deposi se es as he
p ima y sa ing.
• Bo h o mal sou ces,
such as banks
and mic o inance
ins i u ions, and
in o mal sou ces, such as
ela i es o colleagues,
a e u ilised o access
c edi .
Typically hold a
leas ma icula ion,
wi h mos ecen
ec ui s holding ITI
diplomas.
• Condi ions o wo k
a e ha sh wi h
high occupa ional
haza d isk.
• Rela i ely less
p olonged and
di ec exposu e
o haza dous
ma e ials.
• Be e posi ioned o
ecei e al e na i e
employmen a
cu en wages
as skills and
expe ience a e
a i ied h ough
expe ience
ce i ica es.
• P o ided wi h
equi ed sa e y gea
such as helme s,
glo es, and shoes.
Includes a mix o
pe sons om
di e en cas e
backg ounds,
including B ahmins,
Rajpu s, Scheduled
Cas es, and O he
Backwa d Cas es.
• Mos a e locals
o mig an s om
nea by a eas such
as Ko a, Tonk, and
Newai. Hence likely
o ha e ma u e
social ne wo ks.
Membe s
o labou
unions,
isible
and ocal
pa icipa ion
in union
ac i i ies.
• As local
esiden s o
esiden s o
nea by a eas,
ha e some
poli ical
oice in local
decision-
making.
Semi-skilled
(Helpe ,
junio i e ,
welde s,
ga dene s)
• Minimum daily wage o
Rs. 271 as speci ied by
GoR.
• Access o oppo uni ies
o addi ional income
is cu ailed due o
s enuous wo k shi s.
• Many possess local
housing wi h a high
deg ee o in o mali y in
enu e. Some wo ke s
possess ma ginal
ag icul u al land in
places o o igin.
• Insu ed unde he ESI
scheme.
• EPF deposi se es as he
p ima y sa ing.
• C edi is secu ed h ough
in o mal sou ces such
as ela i es, neighbou s,
employe s, o colleagues.
Exp ess a e sion o
o mal sou ces o c edi .
Typically middle
school g adua es.
• Unde - ecogni ion
o skill le el gained
h ough hands-on
wo k expe ience.
• Deg ee o di ec
and p olonged
exposu e o
haza dous ma e ials
is high, impac ing
physical and men al
well-being.
• Access o
al e na i e
employmen a
exis ing wages is
cu ailed due o
a lack o o mal
ecogni ion o skills
and expe ience.
• P o ision o
sa e y gea such
as helme s, glo es,
and shoes is no
adequa e and
imely.
P ima ily includes
wo ke s belonging
o O he Backwa d
Cas es and
Scheduled Cas es.
• The majo i y a e
locals o mig an s
om nea by
a eas such as
Tonk, Newai, and
Jhalawa and hence,
likely ha e ma u e
social ne wo ks.
Membe s
o labou
unions.
Howe e ,
ac i e
and ocal
pa icipa ion
is no
uni o m
ac oss he
ca ego y.
• As local
esiden s,
may exe cise
some say
in local
decision-
making.
Howe e ,
capaci y
o ac i e
pa icipa ion
is cu ailed
due o he
in o mal
na u e
o hei
se lemen s.
(Con inued)
72 Saon Ray, Piyali Majumde , and Vasundha a Thaku
Ca ego y o
wo ke s
Economic capi al Human capi al Social capi al Poli ical capi al
Unskilled
(labou ,
cleaning,
and
sani a ion
wo ke s)
• Minimum daily wage o
Rs. 259 as speci ied by
GoR.
• Access o oppo uni ies
o addi ional income
is signi ican ly educed
due o he physically
s enuous wo k.
• Many possess local
housing wi h a high
deg ee o in o mali y
in enu e. Few indica e
none o ma ginal
ag icul u al land holding
in places o o igin.
• Insu ed unde he ESI
scheme.
• EPF deposi se es as he
p ima y sa ing.
• C edi is secu ed h ough
in o mal sou ces such
as ela i es, neighbou s,
employe s, o colleagues.
Exp ess high a e sion o
o mal sou ces o c edi .
• Gene ally comp ise
p ima y school
g adua es.
• Pe o m physically
a duous manual
labou , including
ci il cons uc ion
and main enance
wo k, as well
as cleaning and
sani a ion wo k.
• Oppo uni ies
o p o essional
g ow h a e usually
s agnan .
• Poo ly posi ioned
o gain al e na i e
employmen due
o highly in o mal
na u e o wo k and
limi ed oppo uni y
o gain skills.
• P o ision o
sa e y gea such
as helme s, glo es,
and shoes is no
adequa e and
imely.
• The majo i y
belong o Scheduled
Cas es and
Scheduled T ibes,
wi h sani a ion
and cleaning
wo ke s being
p edominan ly
Dali s.
• Accoun s o
signi ican
pa icipa ion o
emale wo k o ce
ac oss he o e all
li elihood spec um.
• Mainly locals o
mig an s om
nea by a eas such
as Tonk, Newai,
and Jhalawa .
Hence likely o
ha e ma u e social
ne wo ks.
Membe s
o labou
unions.
Pa icipa ion
in union
ac i i ies is
minimal.
• The
pa icipa ion
o women
is i ually
absen .
• As local
esiden s,
may exe cise
some say
in local
decision-
making.
Howe e ,
capaci y
o ac i e
pa icipa ion
is cu ailed
due o he
in o mal
na u e
o hei
se lemen s.
Fly-Ash B ick
Indus y
Wo ke s
• De e mina ion o wages
o wo ke s is based
on p oduc i i y (uni s
o b icks p oduced o
loaded/unloaded). (Rs.
180/190)
• The majo i y o wo ke s
a e mig an s and do no
possess any local asse s.
Some indica ed small o
ma ginal ag icul u al
land holding in hei
places o o igin.
• No insu ed unde he
ESI scheme, limi ing
access o heal hca e.
• No co e ed unde he
EPF Ac . Fo mal sa ings
a e absen .
• C edi is secu ed h ough
in o mal sou ces such
as ela i es, neighbou s,
employe s, o colleagues.
Exp ess high a e sion o
o mal sou ces o c edi .
• Majo i y we e
p ima y school
g adua es.
• High and
p olonged exposu e
o haza ds a he
wo kplace.
• Poo ly posi ioned
o gain al e na i e
employmen due
o highly in o mal
na u e o wo k and
limi ed oppo uni y
o gain skills.
• No p o ided wi h
equi ed sa e y gea
such as helme s,
glo es, shoes o
masks.
• The majo i y
belong o Scheduled
Cas es and Dali
communi ies.
• Mos a e mig an
wo ke s om MP,
UP, Biha , and o he
pa s o Rajas han.
As a esul ,
ma u e local social
ne wo ks a e likely
o be absen .
Pa icipa ion in
local poli ics
is i ually
absen .
• O ganised
wo ke s'
associa ions
a e absen .
Mac oeconomic Impac s o Coal T ansi ion 73
The capabili y and esilience o a wo ke o deal wi h he impac o he loss o li eli-
hood is a unc ion o hei economic, human, social, and poli ical capi al. Simila ly,
a wo ke is exposed o in e sec ional ulne abili ies o cas e, class, and gende . The
obse a ions su acing du ing his quali a i e esea ch highligh how in e sec ional-
i y a ec s wo ke s o he mal powe plan s. We a gue ha in e en ions o “Jus
T ansi ion” need o ake cognizance and be sensi i e owa ds he in e sec ional
ulne abili ies o TPP wo ke s.
The wage and economic di e en ial be ween he skill-based wo k o ce g oups is
appa en . The dispa i y is u he agg a a ed by sys emic challenges such as capa-
bili y e lec i e skill ecogni ion, abili y o pu sue addi ional economic oppo uni-
ies, and access o inance. Semi-skilled and unskilled wo ke s we e obse ed o be
mo e exposed o haza dous en i onmen s and employmen -associa ed isks. This
includes exposu e o he mal discha ge, coal dus , i e, and explosion haza ds, e c.
No ably, i is p ima ily he unskilled wo ke s who occupy haza dous loca ions
such coal and ash handling. Such exposu e is obse ed o ha e long- e m de imen-
al impac on he heal h and well-being o he conce ned wo ke s. Fo ins ance,
many wo ke s who ha e spen hei li e ime in coal handling complain o deg ada-
ion o eyesigh and blindness. Simila ly, wo ke s in ol ed in ly-ash b ick indus-
ies (allied jobs) a e di ec ly exposed o haza dous was e. Bo h g oups o wo ke s
epo ed high ins ances o skin and espi a o y issues, including silicosis. Such
employmen loca ions, while being low-paid, ca y high long- e m isks o he
wo ke s and high inancial cos s associa ed wi h ch onic heal h issues. The associ-
a ed deg ada ion o heal h and well-being may se e ely impac hei abili y o wo k
and sus ain hemsel es.
Explo a ion o he social con igu a ion o wo ke g oups associa ed wi h he
TPP u he highligh s hei in e sec ional ulne abili ies. Skilled wo k o ce dis-
plays a he e ogenous social composi ion, and includes pe sons om he Gene al
Ca ego y, O he Backwa d Cas es, and Scheduled Cas es. Howe e , social con-
igu a ion becomes inc easingly homogenous as we mo e o semi-skilled and
unskilled wo ke s. Semi-skilled wo ke s p ima ily belong o O he Backwa d
Cas es and Scheduled Cas es; unskilled wo ke s a e p ima ily om Scheduled
Cas es and Scheduled T ibes. The disad an ages which a ise om social posi ion
e lec in communi y suppo sys ems and collec i e ulne abili y. La ge g oups
o ma ginal wo ke s om disad an aged backg ounds se ing he TPP ha e high
collec i e ulne abili y. Consequen ly, his educes hei esilience o deal wi h he
impac o an e en such as decommissioning o a he mal plan because o high
exposu e a he communi y le el. I may be no ed ha he ulne abili y is being
discussed in he con ex o he spa ial coo dina es and social composi ion o he
wo k o ce.
Fu he mo e, he abili y o wo ke s o oice hei challenges and demand sa e-
gua ds o a Jus T ansi ion h ough policy in e en ion is a unc ion o hei
poli ical capi al. Obse ably, poli ical capi al d as ically diminishes as we mo e
om skilled wo ke g oups o unskilled wo ke g oups. While skilled wo ke s
a e ac i e and ocal membe s o labou unions, he pa icipa ion and engage-
men among semi-skilled wo ke s a e inconsis en . Fu he , he pa icipa ion
o unskilled wo ke s in union ac i i ies is okenis ic and hei ep esen a ion in
80 Vigya Sha ma and Julia Logino a
he las decade. Despi e he second-la ges a mland a ea globally, he ou look o
India’s ood and wa e secu i y emains bleak as much o his a mland emains
highly ulne able o clima e-induced changes o wea he pa e ns (Kulan hai elu
e al., 2022). India’s pe ilous clima e and po e y/hunge nexus was obse ed mos
ecen ly in he Global Food Policy Repo (In e na ional Food Policy Resea ch
Ins i u e, 2022) which highligh ed ha by 2030, India will ha e 17 million people
acing hunge , he highes globally (Basak, 2022).
Despi e jus unde hal o India’s wo king-age popula ion being employed in ag i-
cul u e, he impac o clima e change on he sec o is u he pushing millions o
people ou and in o u ban egions in sea ch o be e li elihoods and employmen
oppo uni ies (Kulan hai elu e al., 2022). These decisions exace ba e esou ce p es-
su es on ci ies, leading o a cyclical p ocess o displacemen and disad an age. Ene gy
emains cen al o his con e sa ion on u banisa ion and ising ene gy demand.
In e up ions o a o dable and eliable ene gy supply h ea en o e e se much o he
socio-economic p og ess achie ed amongs he u ban middle class.
iii) A as -eme ging economic powe house
Ha a d Uni e si y’s G ow h Lab ecen ly decla ed India (alongside China, Uganda,
Vie nam, and Indonesia) as one o he as es -g owing economies by 2030 (Cen e o
In e na ional De elopmen a Ha a d Uni e si y, 2022). I has al eady o e aken he
UK as he i h la ges economy, d i en by signi ican consume demand – a sign o i s
expanding middle class and consequen demand o ene gy (Fa e , 2022). The Indian
go e nmen has a ision o capi alise on his ou look h ough i s “Make in India”
ambi ion and become a wo ld-leading design and manu ac u ing hub.
India’s ich demog aphic di idend u he suppo s i s po en ial o become a
s ong economy. O e he nex wo decades, India will ha e i s highes wo king-
age a io e e wi h a i h o he wo ld’s you h popula ion al eady in India (MoSPI,
2017). The po en ial o ha ness his di idend is con ingen upon ongoing in es -
men s in heal h, educa ion, emale wo k o ce pa icipa ion a e, skills and oca-
ional aining, and long- e m e o ms o build i s human capi al. A secu e supply
o ene gy is undamen al o achie ing posi i e ou comes in many o hese a eas.
Equally, he e is scope o design sma , o wa d-looking policies ha in es in a eas
whe e u u e g ow h and jobs a e likely o be as India shi s om a ossil-dependen
o a g een economy.
i ) A his o y o socio-economic disad an age and ma ginalisa ion
Nea ly 50 million people a e expec ed o be li ing below he po e y line in India
by 2040. While ad ances ha e been made ac oss all sus ainable de elopmen goals,
ens o millions o people emain socio-economically ma ginalised unde g owing
inequi y. India also su e s om signi ican socio-economic dispa i ies ac oss s a es,
wi h coal- ich s a es consis en ly pe o ming poo ly on HDI. Ou o 36 s a es and
Union Te i o ies (UTs), Odisha ( ank 29), Chha isga h ( ank 32), and Jha khand
( ank 33) a e India’s op h ee coal-p oducing egions. This in e -s a e inequi y needs
o be conside ed in how India app oaches i s ansi ion ou o ossil uels. Mos
ecen ly a COP 27, India’s En i onmen Minis e acknowledged he signi icance
o socio-economic de elopmen needs, calling SDGs ‘an o e iding p io i y o he
de eloping wo ld’ (Yada , 2022).
Conside he case o he SDG 7. O e he las decade, India has been able o
s eamline i s ene gy policies o add ess ene gy po e y, de ined as he lack o access
o a o dable, eliable, and secu e ene gy supply. Despi e se e al Indian s a es

The Social Aspec s o India’s Ene gy T ansi ion 81
decla ing 100% elec i ied illages, u al elec ici y supply lacks eliabili y, pa icu-
la ly in emo e egions. This has, in u n, led o limi ed oppo uni ies o capi alise
on ene gy access o c ea e p oduc i e li elihoods. Simila ly, o clean cooking, while
LPG access has imp o ed, subsequen up ake and use emain slow and spo adic.
SE4ALL sugges s al hough ‘only’ 14 million people in India cu en ly lack access o
elec ici y, his me ely poin s o an elec ici y connec ion (T acking SDG 7, 2022).
A much la ge numbe o people (in 2018, o e 300 million (Mukhe ji, 2018)) ace
un eliable and poo quali y access o elec ici y, and o e 440 million lack access o
clean cooking echnologies (T acking SDG 7, 2022).
Social Cos s o Coal Phase-ou
Fo mos o he las se en decades, coal has been he cen epiece o India’s ene gy s o y.
Coal has s eng hened he na a i e on na ion-building h ough i s con ibu ion o
employmen and li elihoods, shaping cul u al iden i ies, and a s ong indus ial oo p in
(Lahi i-Du , 2016). Th ough es ed in e es s be ween coal, local and egional poli ics,
and he p i a e sec o , India’s coal economy demons a es he pe ils o ‘ca bon en angle-
men ’ (Gu ía, 2013).
Fo hese easons, in he con empo a y discou se on ene gy ansi ions, coal emains
a sensi i e opic. This has been e iden in he Indian go e nmen ’s back-and- o h posi-
ion on coal. F om Pa is Ag eemen in 2015 o COP 27 in 2022, India has pushed o
make inc emen al changes o i s Na ionally De e mined Con ibu ions and, has sough
ag eemen om o he na ion-s a es o unde sco e i s posi ion on a) phasing down, no
phasing ou , coal and b) calling o a phase-down o all ossil uels – oil, na u al gas,
and coal.
Tensions a ound coal phase-down in India a e d i en by he adi ional posi ioning
o coal as he panacea o p essing de elopmen ou comes. This is also e lec ed in an
o e dependence on coal p oduce s o public goods and se ice deli e y, o he wise s a e
esponsibili ies. An ins i u ional will o os e a ossil- ee pa hway o de elopmen o e
he medium- o-long e m is only jus eme ging. As such, he dis ibu ional impac s likely
o eme ge om a low-ca bon shi , pa icula ly on India’s poo , ha e no been pa o
he na ional discou se un il ecen ly. In he absence o adequa e policy suppo and social
p o ec ion, he local and egional socio-economic cos s o mo ing away om coal will
hi hose a he bo om o he de elopmen ladde he wo s .
This leads o a second, impo an p ocedu al aspec . Decision-making abou low-
ca bon ansi ion a he highes policy le el excludes communi ies on he g ound ha
a e likely o be a he mos isk o disad an age om a echnoc a ic g een policy shi .
Conside ing India’s unique mul iple coal economies, he ank and ile-le el dependen-
cies on coal o li elihoods ex end beyond hose who wo k in o mally ac oss India’s
coal mines. The coal ecosys em suppo s la ge-scale indus ial ac i i y, along he ull
alue chain comp ising sco es o small and medium en e p ises. The oo p in is eno -
mous and wide- anging bo h spa ially and empo ally – om la ge bauxi e mining and
smel e plan ope a o s o i on and s eel plan s o small se ice p o ide s in indus ial
egions h ough o anspo a ion p o ide s, including oad and ailways (Sha ma,
2021).
A ull assessmen o he social cos s o a coal phase-down – o an e en ual phase-ou
– is impossible wi hou comp ehensi ely cha ac e ising he s eng hs, aspi a ions, and
82 Vigya Sha ma and Julia Logino a
limi a ions o he human and social capi al p esen in egions and communi ies along
his alue chain. Thei exclusion in he go e nance and decision-making p ocesses has
al eady been b ough in o ocus by ques ioning he s a e’s mo al and e hical obliga ions
owa ds i s ci izens (Mun o e al., 2017; Pie ik, 2004). The Jus T ansi ions p inciple
builds on c i ical ques ions o igh s, consul a ion, and nego ia ion o ensu e ene gy an-
si ion ou comes lead o co-bene i s ac oss economic, en i onmen al, and social aspec s
o long- e m de elopmen (OECD, 2017). I highligh s he ole o ins i u ional espon-
sibili y in designing public policies ha a e ai and equi able ac oss class, cas e, gende ,
ace, and e hnic di ides (He on & McCauley, 2018). In a socie y such as India acing
deepening inequi y and a dismal ack eco d in add essing impac s on he ma ginalised,
hese ques ions wa an u he delibe a ion (Agga wal, 2020).
These social cos s a e likely o be complica ed by he p esence o se e al addi ional
ac o s: India has had a poo ack eco d o , o ocus on, planned closu e (Dsouza &
Singhal, 2021). Nea ly 300 mines a e ei he closed o abandoned in India. This is a p ess-
ing challenge wi h he numbe expec ed o g ow signi ican ly o e his decade as olde
mines become economically un iable. Fo he i s ime na ionally, social cos s o mine
closu es ha e been conside ed unde he pu iew o he go e nmen ’s closu e policy,
which in and o i sel emains poo ly implemen ed, ha ing only been o mally in o-
duced in 2009 (Reu e s, 2022). Global li e a u e on mine closu e has es ablished ha
o posi i e ou comes pos -mining, social aspec s in closu e planning a e bes ini ia ed
a he s a o a mine wi h human, echnical, and inancial esou ces commi ed o ongo-
ing s akeholde engagemen and consul a ion (Bain on & Holcombe, 2018; Owen &
Kemp, 2018). Decisions conce ning pos -mine land use, economic ansi ion pa hways,
and egional se ice p o ision a e pa icula ly c i ical in India which aces deep-sea ed
he e ogenei y in s akeholde pe spec i es and a cul u e o op-hea y decision-making. To
add ess closu e impac s ai ly and equi ably, ime and inancial commi men s alongside
na ional and egional poli ical will a e necessa y (Roy & Scha a zik, 2021).
Social Cos s o he G een Ene gy T ansi ion
India’s ene gy ansi ion ex ends well beyond a one-dimensional na a i e abou he
social and ins i u ional cos s o , and impac s om, ansi ioning ou o coal. Since he
ea ly 2010s, India has apidly accele a ed g een ene gy p ojec s, mos ly la ge-scale sola
and wind. As shown in Figu e 5.5, he spa ial dis ibu ion o India’s ene gy sys ems is no
uni o m. While coal mining is mos ly loca ed in he eas , enewable ene gy (RE) p ojec s,
mos ly sola and wind, a e in he coun y’s wes e n and sou he n egions.
Academic esea ch on he social aspec s o clean ene gy de elopmen s has mos ly been
ocused on con es a ions in he Global No h. S udies ha explo e ene gy injus ices,
pa e ns o consul a ion and con lic , and isks o na u al esou ce-dependen g oups
in he Global Sou h a e ew and a be ween. The scale and pace o RE de elopmen is
pushing India as a champion o clean ene gy wi hin de eloping egions. Bu he shi o
hese new sys ems is aising se e al Jus T ansi ion challenges, including he na u e o
communi y consul a ion and engagemen ha need sus ained sc u iny (Yenne i e al.,
2016; So acool, 2021).
The agg essi e expansion o he clean ene gy sec o sugges s a ep oduc ion o wha
disad an aged communi ies in he eas e n esou ce- ich bel ha e expe ienced in he pas :
land dispossession, ag a ian ma ginalisa ion, and abuse o igh s o e decision-making
pa icula ly amongs indigenous and e hnic mino i y g oups. Acco ding o S ock (2022,
The Social Aspec s o India’s Ene gy T ansi ion 83
p. 3), “g een g abbing o la ge-scale sola ins alla ions a e jus i ied h ough mo alis-
ic discou ses o ‘sa ing he wo ld’ and coun enanced by ins i u ions o global clima e
go e nance.”
Two addi ional aspec s a e wo h no ing in his con ex . Al hough s uc u al, hei
impac s a e exace ba ed by he “g ea e good” appeal unde pinning g een ene gy
de elopmen .
India is apidly pi o ing o s ong p i a e sec o engagemen no only in coal mining
bu also in he oll-ou o la ge-scale enewable ene gy p ojec s. This is no ewo hy con-
side ing he p i a e sec o has so a ope a ed in a limi ed capaci y in he ene gy space
(mos ly in ela ion o e o m and p i a isa ion o elec ici y in some s a es, and ha oo
wi h i egula success) (Ghosh e al., 2021). Since he ea ly 2000s, he p i a e indus-
y has ac i ely sough o ha ness economic oppo uni ies in “new ene gy” gene a ion
and p oduc ion, uelled by comp ehensi e policy suppo in he o m o incen i es and
capi al subsidies by bo h cen al and egional go e nmen s (Lakhanpal, 2019; Yenne i
Figu e 5.5 Geog aphical dis ibu ion o India’s la ge-scale ene gy sys ems (coal, sola , and wind).
Global Ene gy Moni o , 2022
84 Vigya Sha ma and Julia Logino a
e al., 2016). Howe e , he e is an unde lying no e o cau ion he e: unlike he adi ional
ossil uel-d i en public sec o unde akings ha ha e had an implici esponsibili y o
con ibu e o India’s de elopmen agenda (Viswana han & Agga wal, 2021), and p o-
ide o public goods and se ices, he new coho o home-g own co po a e playe s a e
p o i -d i en en e p ises. The e is an inhe en lack o sensi i i y o he socio-economic
de elopmen aspi a ions o hund eds o millions o people whose li es in e sec wi h co -
po a e in e es s o e access o land, wa e , and o he na u al esou ce weal h (EJA las,
2015; Lakhanpal, 2019; Raj anshi, 2022). Acco ding o India’s ex-en i onmen minis-
e , Jai am Ramesh, “The co po a e lobbies a e jus oo powe ul and in he name o ease
o businesses, en i onmen has become he bigges casual y” (quo ed in (Ellis, 2020)).
A second c i ical – bu unde - esea ched – aspec conce ns he po en ial o inc eased
esou ce ex ac ion o secu e he supply o c i ical mine als necessa y o he clean
ene gy ansi ion. The e a e cu en ly no known ese es o ETMs including, nickel,
cobal , molybdenum, and hea y a e ea h elemen s in India (see Figu e 5.6). The Indian
Figu e 5.6 An o e lay o India’s coal mines and ETMs ese es and esou ces.
Sou ce: Global Ene gy Moni o , 2022; S&P Capi al IQ P o, 2022.
The Social Aspec s o India’s Ene gy T ansi ion 85
go e nmen ecognises i s dependence on ETM impo s o e he sho - o-medium e m
o build i s clean echnology manu ac u ing capabili ies whils ‘ac ing quickly (emphasis
added) on he explo a ion and mining o c i ical mine als and se ing up in es men s in
he downs eam alue chains [domes ically]’ (Chadha & Si amani, 2022).
Recen esea ch has highligh ed ha cau ion is wa an ed as ising ETM demand will
ine i ably ei he lead o expansions o cu en mining leases o he de elopmen o new
p ojec s (Lèb e e al., 2020). Whe e ins i u ional capaci y is limi ed, he pace o mining
in ensi ica ion may lead o exace ba ing social and en i onmen al ex e nali ies. The e is
also e idence o suppo ha ETMs a e spa ially loca ed in some o he mos sensi i e
landscapes, including agile, emo e, and clima e- ulne able ecosys ems, ha hos a sig-
ni ican p opo ion o he wo ld’s indigenous and o he land-connec ed peoples (Owen,
Kemp, e al., 2022). India’s poo eco d in upholding en i onmen al and social sa egua ds
ac oss pas ex ac ion ac i i ies does no lend much con idence o u u e mining p ojec s,
pa icula ly when he e a e likely o be compe ing economic, s a egic, and geopoli ical
d i e s.
A ecen s udy o o e 5,000 ETM mining p ojec s globally ound ha nea ly 70%
o all ETM p ojec s a e on o nea land ha quali ies as Indigenous Peoples’ o peas-
an land (Owen, Leb e, e al., 2022). The s udy sample included20 p ojec s om India
co e ing se en p ima y commodi ies.1 All p ojec s we e iden i ied o be in ju isdic ions
wi h inadequa e pe mi ing, consul a ion, and consen measu es. Fou een o he 20 p o-
jec s ope a ed on o nea Indigenous Peoples’ lands and wi hin 50 km om a iolen
mining- ela ed con lic o e access o land, wa e , and/o na u al esou ces. All p ojec s
exis ed on o nea peasan lands. These a e as onishing indings in and o hemsel es.
Mo e impo an ly, hough, hey o e a imely indica ion o he po en ial social cos s o
a clean ene gy ansi ion i mining ac i i ies in ensi y in a con ex acing concu en chal-
lenges om clima e change, po e y, ood insecu i y, weak go e nance, and inc easing
ma ginalisa ion.
Th ee A eas o In e en ions o India’s Ene gy T ansi ions – D awing on
In e na ional Expe iences
Se e al wo ld egions ha e planned and unde aken ansi ions away om coal since he
ea ly 1980s. While he unde lying d i e s and mo i a ions o hese ansi ions we e di -
e en om he con empo a y condi ions p opelling India owa ds low-ca bon de elop-
men , hey o e impo an poin e s, none heless. Comp ehensi e esea ch on hese pas
expe iences has been widely published elsewhe e (Caldeco e al., 2017; Diluiso e al.,
2021; Walk e al., 2021). This sec ion b ie ly e lec s on hese in e na ional expe iences
o iden i y ele an lessons o India. As discussed ea lie , India’s ansi ion challenge
is uniquely complex and local. Ye hese lessons can guide ea ly planning and esou ce
alloca ion o build s ong ins i u ional s uc u es o e he nex ew decades ha ensu e
ansi ion ou comes a e sensi i e, ai , and equi able. Table 5.2 d aws oge he key les-
sons om a ious in e na ional ansi ion expe iences o in o m India’s app oach o a
Jus T ansi ion.
D awing on hese collec i e expe iences, h ee a eas o planned in e en ion a e p o-
posed below. When implemen ed concu en ly, hese allow a nuanced unde s anding o
he unde lying cos s o ansi ion.

86 Vigya Sha ma and Julia Logino a
Table 5.2 Summa y o in e na ional expe iences wi h coal phase-ou and ele ance o India
Regions D i e s Go e nance Successes Failu es Rele ance o India
Ge many ( ansi ion
om 1982)
(A o a & Sch oede ,
2022; Oei e al.,
2020)
Con inuous
planned and
con olled coal
decline
Coal Commission
wi h a mul i-le el,
mul i-sec o ocus
on iden i ying
and managing
ansi ion impac s.
Complemen ed
by subs an i e
inancial
commi men
P omo ion o
new iden i ies
and economic
oppo uni ies in
coal egions o
o e sus ainable
and long- e m
al e na i es
Policy in e en ions
we e no able o
p e en ex e nali ies
o s uc u al change,
including nega i e
impac s on he
labou ma ke ,
demog aphic decline,
and ou mig a ion
Se ing up a non-pa isan
ansi ion au ho i y ha d i es
polycen icism, de ol ing
decision-making powe o
egional and local au ho i ies;
enabling ac ion on he g ound
h ough unding commi men ;
holis ic app oach o local/
egional de elopmen pos -
coal; inclusi e ansi ion
planning
Poland ( ansi ion
om 1987)
(B aue s & Oei,
2020; Śniegocki
e al., 2022; Szpo
& Ziółkowska,
2018)
Shi o ma ke
economy and
associa ed
sec o al shi s,
high cos s o
coal p oduc ion,
poo economic
iabili y (high
p oduc ion
cos s, poo
labou
p oduc i i y)
Financial
compensa ion o
he coal indus y,
coal egions and
wo ke s; aining
p og ammes
Suppo om
municipali ies Nega i e expe iences o
insu icien suppo ,
causing s uc u al
b eakdowns.
Widesp ead ea
and ins i u ional
dis us leading o
s ong opposi ion
agains upcoming
coal ansi ions;
lack o ocus on
en i onmen al
emedia ion in coal
egions
Localised place-based planning
o o de ly mine closu es;
a oiding social con lic s
h ough mine -speci ic
s uc u al suppo ; building
social capi al o enable
bo om-up ini ia i es;
impo ance o he ade unions;
ies be ween coal and poli ics
causes es ed in e es s o
dis up planning
The Social Aspec s o India’s Ene gy T ansi ion 87
The US ( ansi ion
om 1998)
(Bain on &
Holcombe, 2018;
G eenbe g, 2018)
Compe i ion om
al e na i e
ene gy sou ces
(shale gas,
enewable
ene gy); an i-
coal calls om
p o-clima e
g oups
S a e-d i en a en ion
o jus and people-
cen ed ansi ion
planning
Focus on economic
di e si ica ion
led by local
champions
and oo ed in
communi y ies
Lack o a en ion
o en i onmen al
go e nance and
land ehabili a ion.
High le els o socio-
economic decline
pe sis in ex-coal
egions
Local champions/ ad oca es
om wi hin he communi y;
ocus on quali y – no only
quan i y – o jobs; poo
impo ance o en i onmen al
es o a ion lends o long- e m
socio-economic decline and
legacy challenges
The UK ( ansi ion
om 1981)
(B aue s e al., 2020;
Campbell &
Coenen, 2017;
Gilla d, 2016)
Coal decline
in p ima y
consump ion
led o poo
economics o
coal, ageing
in as uc u e,
and he
eme gence o
clima e ac ion
S ingen egula ion
on coal indus y Local app oach o
and communi y-
led design o
egene a ion
in e en ions
Top-down
implemen a ion
o la ge unds
ailed o add ess
ulne abili ies o
hose mos a - isk,
leading o u he
ma ginalisa ion and
inequi y
P og ammes likely o be
success ul when esponsi e
o communi y needs;
alignmen be ween media/
public discou se and decisi e
policy in e en ion can
expedi e ansi ion decisions;
en ep eneu ship building on
exis ing skills; edeploying
social and in as uc u e
capabili ies along he alue
chain
Aus alia ( ansi ion
om 2012)
(Edwa ds e al.,
2022; Jo zo e al.,
2018)
Inc eased ope a ing
cos s, conce ns
o e public and
en i onmen al
heal h, ageing
in as uc u e,
go e nmen ’s
demand o
inc eased coal
oyal ies
S a e (p o ince)-based
decision-making Focus on local
in as uc u e
de elopmen ,
and economic
di e si ica ion
Insu icien ime
in es ed in
s akeholde
consul a ion
Align ansi ion plans wi h
egional s eng hs and local
p io i ies; ins abili y in
na ional policymaking is
dis up i e; design ansi ion
plans in consul a i e dialogue-
o ien a ed p ocess; ocus on
egula ing closu e
Adap ed om Sha ma e al. (2023).
88 Vigya Sha ma and Julia Logino a
i) Knowledge base commensu a e wi h he pace and scale o de elopmen
India’s ene gy ansi ion is bound by he e ogenei y and complexi y ha is unp ec-
eden ed in i s economic his o y. As a i s s ep he e o e, go e nmen s need o wo k
wi h locally based ci il socie y g oups and esea che s o cha ac e ise impac ed s ake-
holde s ac oss communi ies and indus y g oups (along coal and enewable ene gy
alue chains) and build a knowledge eposi o y ha unde lines u u e change man-
agemen s a egies. The inclusion o esea che s will b ing a high deg ee o igou
needed in hese cha ac e isa ions.
A he ou se , his would include la ge da a collec ion and mapping expedi ions
wi h a census-like p ecision abou he human, na u al, and social capi als p esen
wi hin millions o India’s communi ies a he o e on o he impending ene gy shi .
This knowledge will, in u n, in o m he na u e, iming, and ex en o s uc u al sup-
po needed o ansi ion planning o e he nex ew decades. Financially suppo ed
by he cen al go e nmen , o e seen by a dedica ed s a e go e nmen agency, and
managed by local NGOs, i will os e bo om-up owne ship o he ask, and inclusi e
engagemen , hus ensu ing sensi i i y o local challenges. A baseline eposi o y is c i -
ically missing in India; obus da a is ei he da ed o di icul o loca e o una ailable.
Al hough a daun ing exe cise ( o cos and ime easons), he alue o da a-d i en
policy decisions on esou ce alloca ion as ansi ion plans a e d awn up egionally is
indispensable.
ii) Social dialogue, wi h a ocus on consensus building
Conside ing ha ene gy sys ems a e essen ially socio- echnical sys ems, he impac s
o la ge-scale ansi ions on people and hei socio-cul u al ecosys ems need bo h
acknowledgemen and accoun abili y (Mille & Rich e , 2014). The alue o collabo-
a ion and social dialogue in planning o ene gy ansi ions has been a signi ican
pilla o he Jus T ansi ion na a i e (Molina Romo, 2022). I os e s consensus
building, us , g ea e owne ship o he challenge amongs a ious s akeholde
g oups – communi ies, go e nmen s, and he indus y, as well as a di e si y o inpu
in policy o mula ion (ILO, 2022). Dialogue is c i ical no only o add ess g ie ances
bu , in he i s ins ance, o iden i y igge s ha could u n in o long- e m g ie ances.
An inclusi e dialogue-o ien a ed app oach allows ea ly ecogni ion o p essu e poin s
ha – i igno ed – may lead o disag eemen s, e en ending in iolen con lic .
Sou h A ica’s NEDLAC and Ge many’s Coal Commission a e examples o
na ional agencies accoun able o ensu ing s akeholde consul a ion and engagemen
on an ongoing basis as a d i ing o ce o success ul ansi ion ou comes (IEA, 2022b).
Ano he posi i e example o embedding social dialogue wi hin he b oade app oach
o Jus T ansi ions is e iden in he Ta anaki egion o New Zealand. Homed wi hin
he Minis y o Inno a ion, Business and Employmen , he Jus T ansi ion uni has
meaning ully engaged wi h pa ne ep esen a i es om ac oss go e nmen , wo ke
g oups, employe s, Māo i communi ies, (non-Māo i) local communi ies, and ci il
socie y g oups o c ea e a Jus T ansi ion bluep in , subsequen ly leading o he adop-
ion o a se ies o sec o al oadmaps.
Communi y ma ginalisa ion and lack o inclusion and anspa ency a e widely
epo ed in ene gy p ojec de elopmen s ac oss India (Kau , 2022; Menon, 2022;
Pal asingh & Sa apa hy, 2021). Imp o ed mechanisms o social dialogue will be c i i-
cal o ensu e impac s o go e nmen and indus ial policy on local communi ies a he
o e on o he ansi ion a e minimised, i no a oided.
iii) Holis ic in e en ions, o ex end ansi ions hinking beyond jobs
The Social Aspec s o India’s Ene gy T ansi ion 89
India’s ene gy ansi ion planne s a e al eady con on ed wi h he challenge o
pace. Gi en he unp eceden ed na u e o he scale o he ansi ion, pace wi hou
adequa e p epa edness may lead o long- e m legacy issues. An impo an aspec
o his p epa edness is o conside a policy ha is all-encompassing in design and
ou look.
Mos pas ansi ions ha e ocused mainly on job c ea ion. Whils no unimpo an ,
economic oppo uni ies a e seldom equi ably accessed in he absence o social s abili y
and ecological in eg i y o local ecosys ems (Wilgosh e al., 2022). The e is e idence
ha poo a en ion o en i onmen al ehabili a ion played a c i ical ole in he las -
ing socio-economic decline s ill no ed ac oss ex-coal egions in Appalachia (Engle,
2019; G eenbe g, 2018). Announcemen s o he Jus Ene gy T ansi ion Pa ne ships
in Sou h A ica and Indonesia acknowledge hese pas ailu es and ha e hus o e ed a
comp ehensi e ansi ions agenda including li elihoods secu i y, in as uc u e epu -
posing, p o ec ion o a - isk g oups, and engagemen wi h ac o s ac oss he coal alue
chains (Eu opean Commission, 2022a, 2022b). In ela ion o en i onmen al es o a-
ion o India, in e en ions will be needed on bo h ci cula economy and closu e
manda es, including e isi ing closu e- ela ed inancial assu ance, planning imelines,
and egula ing penal ies o inac ion.
Equally, in lec ion poin s o social con lic s in India’s ene gy sys ems need be e
mapping and planning. The in e sec ion o ene gy and gende is one no able aspec
(Fa hallah & Pyaku el, 2020; Tsagka i, 2022). In he coal sec o , o example, s udies
ha e highligh ed he disp opo iona e impac on women and young gi ls mani es ing
in a decline in women’s pa icipa ion in he labou o ce (Lahi i-Du , 2012). Policies
ha can di ec ly add ess s uc u al and social ba ie s o manage he gende ed impac s
o Jus T ansi ion (B aunge & Walk, 2022) in India a e u gen ly needed. A sound
knowledge base complemen ed wi h a bo om-up consul a i e p ocess can enable
b oad-based, bu egionally ele an , ansi ion planning.
Conclusion
India has p oclaimed i s s and on clima e change on he global s age. I has commi ed o
an ambi ious agenda o clima e ac ion bu has equally sough o highligh gaps in ac ion
om he de eloped wo ld on echnology exchange, clima e inancing, and esponsible
consump ion o all ossil uels. India has – pe haps mos asse i ely o all de eloping
egions – also made clea i s ongoing eliance on coal o e he medium e m o mee i s
u gen de elopmen p io i ies, while i con inues o scale up enewable ene gy p oduc-
ion and up ake.
This chap e has highligh ed ou aspec s o he uniquely complex cha ac e o India’s
ene gy ansi ions. These ac o s help make sense o he dicho omy unde lying India’s
cu en and u u e choice o ene gy sys ems. These a e igh ul choices bu equi e ca e-
ul, p oac i e planning and go e nance o ensu e impac s – and hei ou comes – pa -
icula ly o nea ly 600 million Indians (The Wo ld Bank, 2022) li ing in po e y do no
cause u he ma ginalisa ion and inequi y.
The chap e iden i ies h ee in e en ions o help design obus long- e m ene gy pol-
icy ha builds on he p inciples o jus ice and ai ness o e he long- e m. These o e
a c edible pa hway owa ds an inclusi e u u e, one ha is no an i he ical o India’s
g ow h and de elopmen ambi ions. The i s speaks di ec ly o he eno mous gap in
96 Vigya Sha ma and Julia Logino a
capaci y and 810 MW o sola powe capaci y (RVUNL, 2022). We explo e he
ansi ion scena ios o RVUN and e alua e he mac o impac on jobs.
T ansi ion Scena ios o RVUNL
We de elop h ee scena ios o RVUNL o he pe iod 2022–2030 based on di e -
en ia ed a es o deca bonisa ion. The espec i e ansi ion pa hways aid us in a i -
ing a RVUNL’s powe gene a ion po olio mix un il 2030 and analyse plausible
employmen c ea ion (and loss) in he commissioning and ope a ions o di e en
asse s. Employmen c ea ion o decommissioning he mal asse s is no conside ed.
Scena io 1 – Business As Usual (BAU): He e, he p oposed coal powe capaci y
o 2.2GW is conside ed o be commissioned by 2027, wi h an addi ion o 810
MW o Sola capaci y in 2024 (announced in he FY22 budge ). Conside ing
T ansi ion Scena ios
•
Decommissioning o coal
powe plan s a 35 yea s
•
Commissioning o p oposed
new coal powe plan s 2.2
GW by 2027
•
Commissioning o he
p oposed sola capaci y o
810 MW by 2024
Business as Usual Redi ec ing Capi al o
Accele a ed T ansi ion
•
Decommissioning o coal
powe plan s a 30 yea s
•
Commissioning o he
p oposed sola capaci y o 810
MW by 2024
•
Capi al o he p oposed new
coal powe plan s is edi ec ed
o sola powe
•
Addi ional sola capaci y shall
be commissioned by 2030
Agg essi e Deca boniza ion
•
Decommissioning o coal
powe plan s a 25 yea s
•
Commissioning o he
p oposed sola capaci y o
810 MW by 2024
•
RVUNL’s gene a ion in 2030
as sha e o RJ ene gy
equi emen shall emain a
2022 le el (50%).
•
Req Add. Gene a ion, pos
decommissioning shall be
om sola commissioned by
2030
Figu e 5.A.2 Me hodology o assessing he impac on jobs.
Sou ce: Au ho ’s compila ion and analysis.
-
10,000
20,000
30,000
40,000
50,000
60,000
BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD BAU RCAT AD
2022 2023 2024 2025 2026 2027 2028 2029 2030
Yea -wise jobs a ailable o h ee ansi ion pa hways be ween 2022 and 2030
Coal Jobs Sola Jobs
Figu e 5.A.3 Yea -wise jobs a ailable o h ee ansi ion pa hways be ween 2022 and 2030.
Sou ce: Au ho ’s compila ion and analysis.

The Social Aspec s o India’s Ene gy T ansi ion 97
a ealis ic decommissioning ajec o y based on his o ical ends, exis ing coal
asse s pas 35 yea s a e conside ed o e i emen .
Scena io 2 – Redi ec ing Capi al Fo Accele a ed T ansi ion (RCAT): He e, we assume
ze o he mal capaci y addi ion wi h he equi y capi al budge ed by GoR edi ec ed
owa ds sola PV capaci y addi ion. The sola PV capaci y addi ion in his scena io
is in addi ion o he planned 810 MW o Sola capaci y simula ed in Scena io 1.
Fu he , he e i emen o coal asse s pas he age o 30 yea s is conside ed.
Scena io 3 – Agg essi e Deca bonisa ion (AD): This scena io in ol es agg essi e
deca bonising by shel ing he cu en plans o add new coal capaci y and e i ing
he exis ing coal plan s a 25 yea s. The sha e o Rajas han’s ene gy equi emen
me h ough RVUNL’s gene a ion in 2030 shall emain a he cu en le el o
35%, which is achie ed h ough an accele a ed addi ion o sola PV capaci y.
Table 5.3 Snapsho o he RVUNL ansi ion unde he h ee scena ios
 2023 2030
 BAU RCAT AD
RVUNL gene a ion capaci y (MW)    
Coal 7,830 9,435 6,730 5,535
Gas 604 604 604 604
Hyd o 164 164 164 164
Sola 0 810 4,842 10,754
To al 8,597 11,012 12,340 17,056
RJ peak demand (MW) 17,206
RJ Peak Demand (MW) - 20 h EPS 23,534 23,534 23,534
RVUNL gene a ion (MU)
Coal (R) 42,621 51,358 36,634 30,129
Gas (R) 2,518 2,518 2,518 2,518
Hyd o 196 196 196 197
Sola 0 1,419 8,484 18,841
To al 45,335 55,491 47,831 51,685
RJ ene gy equi emen (MU) 95,172
RVUNL gene a ion s RJ ene gy
equi emen (%)
1,49,063 1,49,063 1,49,063
Addi ional capi al in es men s
(Rs., c o es)
19,683 19,683 43,715
Emissions (million onnes o CO2)
Released in he yea 49.363 53.533 38.579 31.972
% Change om 2022 o 2030 (+/-) 8% -22% -35%
To al emission sa ing b/w 2023-30 5.67 62.50 87.08
Impac on Jobs
Numbe o Job yea s as on 2022 13,295
Change in Coal Job yea s by 2030 2,254 -2,247 -4,145
P e-Comm. Sola Job yea s on 2030 0 2,857 6,345
Pos -Comm. Sola Job yea s on 2030 405 2,421 5,377
To al Sola Job yea s on 2030 405 5,278 11,722
To al Jobs Yea s A ailable on 2030 15,955 16,326 20,872
Jobs C ea ed b/w 2023 and 2030 19,672 15,601 33,416
Coal and gas gene a ion(R) is based on a ed capaci y and no ma i e PLF, and
a ailabili y adjus ed o auxilia y consump ion.
Sou ce: Au ho ’s analysis.
98 Vigya Sha ma and Julia Logino a
The impac on jobs is es ima ed o each ansi ion scena io based on es ima ed
jobs c ea ed o he addi ion o sola and coal powe capaci y and adjus ing o
he loss o jobs agains he decommissioning o coal powe plan s. Fo a compa a-
i e analysis, we es ima e equi alen job yea s pe megawa pe annum o sola
and coal powe gene a ion. A job-yea is de ined as he a io o ime an employee
spends on a pa icula p ojec / ask in a gi en yea o he s anda d o al wo king
hou s in ha pa icula yea . The analysis is ca ied ou o p e-commissioning,
pos -commissioning, and decommissioning s ages, as shown below.
Analysis o P e-commissioning, Pos -commissioning, and Decommissioning S ages
The cos s o ansi ion a e es ima ed based on a ailable benchma ks o he com-
missioning o powe plan s Rs. 7.3 C pe MW (GoR, 2022) o coal and Rs. 4.07
C pe MW (IEEFA, 2022) o sola .
The BAU scena io esul s in he augmen a ion o he mal capaci y and sola
capaci y by 2030, esul ing in an inc ease in annual CO2 emissions o he u ili y
by 8% om i s 2022 le els. In he RCAT, he annual CO2 emissions o he u ili y
le el shall educe by 22% by 2030 om he 2022 le els. The hi d scena io (AD)
is ambi ious, whe ein he RVUNL, while main aining i s sha e in he Rajas han
ene gy landscape, agg essi ely pu sues ea ly decommissioning o he mal asse s.
This shall demand an in es men o Rs. 44,000 C 2, sa e 87 million me ic onnes
o CO2 be ween 2023 and 2030, and educe annual emissions by 35%. A summa y
o he analysis ollows.
Impac on Jobs
As can be seen om he able, in he AD (accele a ed deca bonisa ion) scena io,
RVUNL is likely o c ea e 33,000 jobs be ween 2023 and 2030. In compa ison,
he BAU and RCAT scena ios shall c ea e 19,000 and 15,000 jobs, espec i ely.
Ne jobs c ea ed a e a unc ion o jobs los due o decommissioning he mal asse s
and jobs c ea ed in he enewable ene gy indus y. I may be no ed ha addi ional
jobs may be c ea ed by epu posing he mal powe plan s and p io i ising adop ion
o mo e job-in ensi e echnologies such as dis ibu ed sola , bu he same a e no
conside ed in ou analysis.
Ene gy ansi ion in elec ici y gene a ion will no simply eplace coal jobs wi h
enewable ene gy jobs as he ansi ion p esen s a signi ican spa ial shi in he
loci o ene gy gene a ion om he eas e n o he wes e n egion in Rajas han. This
aises conce ns o bo h di ec employmen and allied jobs.
The na u e and quali y o jobs is also a conce n. The deploymen o enewable
ene gy asse s c ea es a majo i y o jobs in he cons uc ion and p e-commissioning
phases, whe eas he job in ensi y o ope a ions and main enance is e y low.
The p e-commissioning jobs o sola PV asse s include business de elopmen ,
design and p e-cons uc ion, and cons uc ion and commissioning, ypically las ing
less han a yea . The majo i y o he jobs a e c ea ed du ing he cons uc ion and
p e-commissioning phase (2.7 job-yea pe MW), wi h 65% being unskilled and
semi-skilled (elec icals and panel ins alla ion) and 35% skilled (si e enginee ing
The Social Aspec s o India’s Ene gy T ansi ion 99
ela ed) in na u e. The jobs in he business de elopmen phase a e 100% skilled,
and he design and p e-cons uc ion phases equi e 62% skilled wo ke s. A he
same ime, in he pos -commissioning, he sola plan s employ – semi and low-
skilled wo ke s, wi h he majo i y – 86% o he jobs om unskilled (50%) and
semi-skilled (36%) ca ego ies (Kuldeep e al., 2017).
The he mal powe indus y o e s long- e m jobs, and he majo i y o pe sonnel
employed belong o unskilled and semi-skilled ca ego ies. The condi ion o wo ke s
employed o coal handling can be pa icula ly g ie ous, while hei wages do no
e lec hei isk exposu e.
Al hough he clean ene gy indus y has ela i ely less haza dous condi ions, he
wages o he labou o ce and he sho - e m na u e o he clean ene gy jobs may
impac he long- e m sus enance and g ow h o he associa ed labou .
Re e ences
Go e nmen o Rajas han (GoR) (2022). Annual inancial s a emen . Jaipu . Budge Speech,
Rajas han Budge , 2022-23,A ailable a h ps:// inance. ajas han.go .in/docs/budge /
s a ebudge /2022-2023/Budge 2022-23English.pd
IEEFA (Ins i u e o Ene gy Economics and Financial Analysis). (May, 2022). Sola a i s
p ojec ed o inc ease by one- i h o e he nex yea .
Kuldeep, N. (2017) G eening India’s Wo k o ce. A ailable a h ps://www .ceew .in /si es /
de aul / iles/CEEW-NRDC-G eening-India-Wo k o ce- epo -20Jun17.pd
RVUNL (2023) 22nd Annual epo FY 2022-23, A ailable a h p://103.122.36.131/con en /
dam/ aj/ene gy/ unl/pd /AnnualRepo /RVUN %20AR %202021 -22 _Main _comp ess ed
.pd
Appendix 5B
How a Village in Maha ash a Spa ked a New Discussion on he T ansi ion
Away om Coal
Vinu a Gopal, Bad i Cha e jee, and Tanmay Takle
The small illage o Nandgaon, which has 800 esiden s and is 90 kilome es om
Nagpu ci y, in he Indian s a e o Maha ash a, se ed as he ca alys o a discou se
abou wha could be done o lessen he de imen al e ec s o coal on an ag a ian
communi y. When locals’ demons a ion agains he illegal disposal o ly ash in
hei a mlands made na ional headlines, he- hen S a e Minis e o En i onmen ,
Aadi ya Thacke ay ook no ice. He hal ed he ly ash om being dumped in he
a ea and s a ed a p ocess o build al e na i e li elihoods and a sola powe plan
he e. This inciden also spa ked a mo e in-dep h discussion on coal plan phase-
down and communi y in ol emen in he s a e. The ac ions aken in Nandgaon, he
di icul ies encoun e ed by a ious local adminis a ions he e, and he unc ion o
communi y in ol emen a e all discussed in his case s udy.
100 Vigya Sha ma and Julia Logino a
Assessing he Magni ude o he Issue
To mee i s goal o supplying enough elec ici y o Maha ash a, MAHAGENCO
elies on he he mal powe plan s a Ko adi (2400 MW) and Khapa kheda (1340
MW), bo h o which a e close o Nagpu . They ha en’ , howe e , succeeded in ais-
ing he s anda d o li ing o people who li e and wo k close o powe plan s. Coal
mines, manganese mines, and b ick manu ac u ing indus ies a e among he o he
businesses in he a ea.
Fa me s in Nandgaon had been cul i a ing hei land o decades when, wi h-
ou hei consen , in No embe 2021. Maha ash a S a e Powe Gene a ion
Company (MAHAGENCO) s a ed dumping uckloads o ly ash om he nea by
Khape kheda The mal Powe S a ion (KTPS), loca ed 40 km away.
La e a nigh , esiden s o he a ea and Zilla Pa ishad membe s om Nandgaon
s a ed ilming he ly ash disposal. Using his as e idence, hey s a ed demons a -
ing (Manchanda, 2021) agains he illegal ash slu y dumping in hei a mlands,
highligh ing ha i was a lag an b each o en i onmen al laws. Mos impo an ly,
ly ash was being discha ged wi hou ecei ing a no-objec ion ce i ica e (NOC)
(Behl, 2021) om nea by inhabi an s.
The ash pond, which is si ua ed in he hamle nex o he Pench i e , acco ding
o Sonali Manoj Va khade, Sa panch o Nandgaon, was ha ing a nega i e impac
on he en i e illage (Bose, 2022). I s sp ead was causing ai pollu ion, uining
c ops, poisoning wa e sou ces, d inking wa e , and ha ing se ious heal h e ec s on
he local communi y.
Using Resea ch, Communica ing he E ec s o Fly Ash Con amina ion
A g oup o esea che s and ci il socie y membe s (CSOs), h ough an in-dep h s udy,
b ough his illage's si ua ion o public a en ion. A esea ch pape eleased by he
Cen e o Sus ainable De elopmen , Man han, and Asa e alua ed pollu ion and
i s impac s on local communi ies li ing in 21 illages, including Nandgaon, loca ed
adjacen o KTPS and Ko adi he mal powe plan (“POLLUTED POWER,” n.d.).
The esea ch showed signi ican pollu ion ac oss wa e bodies wi h dange ous
me als such as me cu y, a senic, aluminium, li hium, and o he s con amina ing he
su ace, g oundwa e , and d inking wa e , as well as widesp ead con amina ion o
ai , wa e , and soil owing o ly ash (www .ETEne gywo ld .com, 2022). Wa e sam-
ples ailed o mee he Bu eau o Indian S anda ds’ d inking wa e s anda ds and
exceeded sa e limi s by 10–15 imes.
Repo ing o he S a e, Cen e, and Ou lining he Si ua ion on he G ound
Gi en ha hey we e awa e o he heal h implica ions and how hei u u e
was being a ec ed, local esiden s began o s a egis e ing hei conce ns
publicly, no only wi h local go e nmen au ho i ies bu also di ec ly wi h he-
hen S a e En i onmen Minis e , Aadi ya Thacke ay as well as Union Minis e ,
Ni in Gadka i, and he Minis y o En i onmen Fo es s and Clima e Change
(MoEFCC). Nandgaon esiden s sen a slew o le e s o o icials a a ious le els
The Social Aspec s o India’s Ene gy T ansi ion 101
o go e nmen , unde he di ec ion o hei illage head (block, dis ic , and s a e
le els) (Jog, 2022).
The- hen S a e En i onmen Minis e called a numbe o mee ings in he mon hs
ha ollowed (Decembe 2021 o Feb ua y 2022). The Minis e ejec ed he excuses
being made by MAHAGENCO, saying ha “ he en i onmen canno be sac i iced
a he expense o de elopmen , especially whe e consen om locals is no in place.”
He ga e he S a e pollu ion con ol au ho i y ins uc ions o isi he loca ion and
sugges solu ions be o e deciding on he nex s eps. Go e nmen and CSOs wo ked
oge he o achie e an o e a ching unde s anding o he p oblem and de ised ho -
ough solu ions.
Union Minis e Takes Cognisance, MoEFCC Calls o Spo Inspec ion
Ni in Gadka i, a Nagpu -na i e and hen Union Minis e o Road T anspo and
Highways, was p omp ed by people’s complain s o also call o MAHAGENCO
o educe pollu ion om bo h he Ko adi and Khape kheda he mal powe plan s.
The Minis e a gued o he ea lies possible ac ion aken immedia ely.
On Feb ua y 4, 2022, in a ela ed de elopmen , ep esen a i es om he Union
En i onmen Minis y isi ed Nandgaon and neighbou ing dis ic s. The eam sen
a epo o MAHANGENCO o compliance and asked hem o o m a commi -
ee wi h ep esen a i es om he Maha ash a Pollu ion Con ol Boa d (MPCB),
in ol ed NGOs, Sa panches om impac ed illages, and MAHAGENCO o icials
o egula ly moni o he si e.
Se ies o Ac ions Commence: Closu e o Fly Ash Dump a Nandgaon
An o de was issued o KTPS o s op dumping ash slu y a Nandgaon on Feb ua y
1, 2022, by he MPCB. Acco ding o he no ice, MAHAGENCO iola ed en i on-
men al s anda ds since i did no ge consen om locals. The Chie Enginee , KTPS,
complied wi h he o de and hal ed dumping on Feb ua y 4, 2022.
Residen s o Nandgaon expe ienced g ea elie when he ash dumping s opped,
bu a e lea ning abou he de imen al e ec s ha he ly ash al eady dumped a
he si e was ha ing on locals’ quali y o li e, he local communi y, led by mo he s
and o he women, banded oge he o w i e a le e o he Minis e . They asked ha
he ash pond be pe manen ly closed, he bund epai ed, and esiden s’ quali y o li e
be imp o ed h ough be e employmen oppo uni ies.
This spu ed Aadi ya Thacke ay o isi Nandgaon and assess he si e himsel
while he MPCB es ablished a comp ehensi e p ohibi ion on he disposal o ly ash
wi hin h ee mon hs and di ec ions o si e ehabili a ion we e pu in place.
Minis e ’s Visi and Communi y In e ac ion
On 14 Feb ua y 2022, Thacke ay and his eam inspec ed he whole ly ash dump-
si e. Thacke ay isi ed he loca ion o make su e e e y hing was p oceeding acco d-
ing o plan and spoke wi h he locals, pa icula ly he women. A g oup o mo he s,
led by he Sa panch, me wi h Thacke ay and exp essed hei conce ns, which he

102 Vigya Sha ma and Julia Logino a
Minis e ook cognisance o . The Nandgaon ash pond will soon be pe manen ly
closed, announced Thacke ay (Bhale ao, 2022). In addi ion, he ga e he mo he s
and he local communi y he assu ance ha a plan will be pu oge he o he
imp o emen o he communi y and he p o ision o employmen oppo uni ies.
Maha ash a Ma ks he S a o an Ene gy T ansi ion Mo emen
The En i onmen Depa men was p oac i e and o wa d-looking in esponse o
eques s om he ci il socie y and s a ed a se ies o in e en ions o Maha ash a’s
Ene gy T ansi ion, making i he i s s a e in India o do so. On 14 Feb ua y 2022,
he ollowing announcemen s we e made public:
• Pu ing a sola plan in ope a ion a Nandgaon – A e he ly ash was emo ed,
he S a e o de ed MAHAGENCO o make plans o a 20 megawa (MW) sola
powe p ojec .
• Oppo uni ies o locals in Nandgaon o eskill and ind jobs we e c ea ed as
pa o a s a egy o he a ea’s upli men and o main ain a balance be ween
he needs o he communi y and he ene gy indus y as i ansi ions om coal o
clean ene gy (Deshpande, 2022).
• Residen s who los hei land o su e ed heal h p oblems as a esul o he ly ash
we e awa ded a o al compensa ion o Rs. 5 c o es by he Ene gy Depa men o
Maha ash a (Behl, 2022).
• S udy on Powe Plan Phase Down – A ho ough in es iga ion in o how ou -
da ed and pollu ing coal- i ed powe plan s migh be g adually shu down in
acco dance wi h upda ed na ionally calcula ed con ibu ions was ini ia ed.
• An audi o Maha ash a’s powe plan s’ pollu ion p e en ion p ac ices would
be conduc ed. Regula ing he mal powe plan s ha don’ adhe e o he ules
would be necessa y.
• 100% Fly Ash would be u ilised o en i onmen ally iendly and in as uc u e
p ojec s and b ick manu ac u e. Plans o a simila na u e will be made o o he
plan s in Maha ash a.
Fu he mo e, he En i onmen Depa men ’s submission o he s a e legisla i e
assembly in June 2022 said ha he ac ions o emo e he Nandgaon ly ash dump-
si e we e he i s o be aken in India since he Dad i NTPC ly ash si e was o de ed
o close as a esul o p ocedu al issues in 2008.
Cu en Scena io
MAHAGENCO has cu en ly (as on No embe 2022) emo ed 85% o he ly ash,
and p epa a ions o he sola acili y a e on wi h ende s iled in Sep embe 2022.
Ou o 150 a me s, 92 ecei ed inancial aid om he Ene gy Depa men , and 83
o he s we e gi en jobs by he dis ic adminis a ion. Fly ash disposal is s ill no
pe mi ed in Nandgaon. Bu his is only one o many illages in his a ea ha a e a
isk om ly ash pollu ion.
The Social Aspec s o India’s Ene gy T ansi ion 103
Lessons
We need g ound esea ch o p o ide e idence on he cu en s a e o en i onmen al
and social compliance o powe plan s. This needs o be sha ed wi h he local com-
muni y, local adminis a ion, he managemen o he powe plan s and egula o y
au ho i ies o enable a cons uc i e engagemen be ween communi y, local leade -
ship, and egula o y au ho i ies.
We need in o med local communi ies o be able o engage wi h all he decision
make s.
Panchaya leade s and ele an minis e s need o unde s and he al e na i es
a ailable o hem. Local CSOs could play a ole in engaging wi h he communi y
on a egula basis on he issues ela ed o he ansi ion.
Mos impo an ly, leade ship mus be enabled a all le els o go e nance and
poli ical will o p o ide he necessa y momen um o implemen ing he egula o y
p ocesses and o build he dialogues equi ed o an al e na i e u u e.
Re e ences
Behl, M. (2021, Decembe 25). NGO iles complain , illage s demand closu e o ash pond.
The Times o India. h ps:// imeso india .india imes .com /ci y /nagpu /ngo - iles -complain
- illage s -demand -closu e -o -ash -pond /a icleshow /88481635 .cms
Behl, M. (2022, June 19). S a e o compensa e Nandgaon a me s hi by ly ash. The Times
o India. h ps:// imeso india .india imes .com /ci y /nagpu /s a e - o -compensa e -nandgaon
- a me s -hi -by - ly -ash /a icleshow /92308678 .cms
Bhale ao, S. (2022, Feb ua y 9). Khape kheda powe plan s ops dumping o ly ash in
Nandgaon illage. The Indian Exp ess. h ps://indianexp ess .com /a icle /ci ies /mumbai /
khape kheda -powe -plan -s ops -dumping -o - ly -ash -in -nandgaon - illage -7763484/
Bose, M. (2022, Feb ua y 3). Khape kheda he mal powe plan old o s op dumping ash
slu y in Nandgaon. Deccan He ald. h ps://www .deccanhe ald .com /na ional /wes /khap-
e kheda - he mal -powe -plan - old - o -s op -dumping -ash -slu y -in -nandgaon -1077790
.h ml
Deshpande, T. (2022, Ap il 22). How illage s li ing nea coal powe plan s los heal h,
wa e secu i y. h ps://www .business -s anda d .com /a icle /cu en -a ai s /how - illage s
-li ing -nea -coal -powe -plan s -los -heal h -wa e -secu i y -122042200164 _1 .h ml
Jog, S. (2022). S op disposal o ash slu y: Maha ash a go o MAHAGENCO. F ee P ess
Jou nal. h ps://www . eep essjou nal .in /mumbai /s op -disposal -o -ash -slu y -maha ash-
a -go - o -mahagenco
Manchanda, D. (2021, Decembe 25). Raising oice agains unscien i ic ly-ash dumping
in Nandgaon illage. Nagpu O anges. h ps://nagpu o anges .com / aising - oice -agains
-unscien i ic - ly -ash -dumping -in -nandgaon - illage/
Pollu ed powe : How Ko adi & Khape kheda he mal powe s a ions a e impac ing he
en i onmen . (n.d.). Man han Adhyayan Kend a. Re ie ed Ma ch 6, 2023, om h ps://
www .man han -india .o g /pollu ed -powe -how -ko adi -khape kheda - he mal -powe -s a-
ions -a e -impac ing - he -en i onmen /
www .ETEne gywo ld .com. (2022). Join inspec ions o pollu ion ho spo s nea Khape kheda
powe plan —ET Ene gyWo ld. ETEne gywo ld.Com. h ps://ene gy .economic imes
.india imes .com /news /powe /j -inspec ions -o -pollu ion -ho spo s -nea -khape kheda
-powe -plan /91652728
6
In oduc ion
Ene gy ansi ion has eme ged as a key enable o clima e ac ion equi ing deca bonisa-
ion ac oss he sec o s o he economies. The po en ial o ex ensi ely elec i ying he
majo ene gy-in ensi e sec o s o any economy in ealising he goals o ene gy ansi ion
and clima e ac ion is signi ican . This s a egy, commonly e e ed o as deep elec i-
ica ion, is p emised on apping he po en ial o low-ca bon and ca bon- ee elec ic-
i y sys ems o deca bonise ene gy- ela ed sec o s including powe , anspo , buildings,
domes ic cooking, and o he such ene gy-in ensi e economic ac i i ies.
Deep elec i ica ion o economic sec o s can p o ide he much-needed s a egic le e s
o e en ually assis in he deca bonisa ion o he economy and enable na ions o app oach
he global and domes ic clima e ac ion goals, pa icula ly pe aining o achie ing ne -
ze o ca bon emissions. Acco ding o a epo by he In e na ional Renewable Ene gy
Agency (IRENA), enewable ene gy–powe ed deepe elec i ica ion o global ene gy sys-
ems can help in achie ing abou 75% o ene gy- ela ed emission educ ions equi ed
by 2050 (IRENA, 2018). Globally, he po en ial o enewable ene gy–powe ed deepe
elec i ica ion has been es ima ed by se e al epo s which ha e pegged deep elec i ica-
ion and uel swi ching o elec ici y as en i onmen ally benign s a egies o achie ing
clima e goals and ca bon educ ion. Fo ins ance, a s udy by esea che s om S an o d
and UC Be keley sugges s an elec i ica ion plan o all 50 s a es o he USA in which
he inc emen al elec ici y demand is o be me by enewable ene gy sou ces (S an o d
Uni e si y, 2015). Simila ly, he Uni ed Na ions Sus ainable De elopmen Solu ion’s
Deep Deca bonisa ion Pa hways p ojec con empla es he na ional deep deca bonisa-
ion po en ial and s a egies h ough i s wo k in 36 coun ies (Ins i u e o Sus ainable
De elopmen and In e na ional Rela ions, n.d.).
The needle on elec i ica ion o key ene gy- ela ed sec o s is mo ing as in he Indian
con ex as well. This is e iden om he conce ed e o s o he Go e nmen o India
and se e al S a e Go e nmen s owa ds elec i ying sec o s such as oad anspo a ion,
ailways, buildings and domes ic cooking, amongs o he s. Ta ge ed policies as well as
p i a e sec o –led ac ion in hese a eas a e a es imony o he ecogni ion o deep elec i-
ica ion as a key enable o India’s clima e commi men s and ene gy ansi ion s a egy.
A he same ime, i is also widely ecognised ha bene icial ou comes o deep elec-
i ica ion will only ma e ialise i e o s on g eening he elec ici y g id a e accele a ed.
Fo e e y de ice, appliance, p oduc , o sec o which ge s elec i ied and connec ed o he
powe g id, e e y inc emen al achie emen owa ds g eening he g id anscends in o he
en i e lee o g id-connec ed p oduc s and sec o s. Thus, deep elec i ica ion is inhe en ly
6
Deep Elec i ica ion in India
A Re iew o S a egies, Policies, and Sec o al
De elopmen s
Sa hak Shukla, Shubham Thaka e, and
Ragha Pachou i
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-8
10.4324/9781003433088-8
Deep Elec i ica ion in India 105
Deep Elec i ica ion in India
associa ed wi h s uc u al challenges pe aining o g eening he elec ici y supply, along
wi h echno-economic, social, poli ical, and en i onmen al issues ha pe sis . Add essing
hese issues will go a long way in olling ou deep elec i ica ion plans wi h e ec i eness
and e icacy o e o s owa ds ealising he in ended objec i es o ene gy ansi ion and
deca bonisa ion.
Policies Suppo ing Deep Elec i ica ion in India
The policy landscape in India is inc easingly emb acing and p omo ing he elec i ica ion
d i e o key sec o s h ough a hos o schemes, policies, and o he such ini ia i es. The
p ominen sec o s whe e c i ical policies suppo ing deep elec i ica ion a e ac i e include
anspo , buildings, indus y, domes ic cooking, and ag icul u e.
T anspo
In he anspo sec o , he Union Go e nmen is implemen ing i s lagship scheme called
Fas e Adop ion and Manu ac u ing o (Hyb id and) Elec ic Vehicles in India – he
FAME Scheme (Minis y o Hea y Indus ies, n.d.-b). This scheme was s a ed in 2015 as
pa o he Na ional Elec ic Mobili y Mission Plan 2020, launched in 2013, which
aimed a achie ing na ional uel secu i y by p omo ing elec ic and hyb id ehicles in
he coun y (Minis y o hea y indus ies, 2013). The FAME scheme aims a incen i is-
ing elec ic ehicles ac oss all he segmen s namely wo-wheele s, h ee-wheele s au o,
passenge ou -wheele s, ligh comme cial ehicles, and buses h ough supply-side and
demand-side incen i es on manu ac u ing o hese ehicles by he O iginal Equipmen
Manu ac u e s (OEMs) in he au o sec o . Phase-II o he FAME India Scheme is being
implemen ed o a pe iod o h ee yea s om Ap il 2019 wi h a o al budge a y suppo
o Rs. 1,00,000 million, mo e ecen ly he scheme has been ex ended ill 31 Ma ch 2024
(Li emin , 2021). In he i s phase o he Scheme abou 0.28 million hyb id and elec ic
ehicles a e suppo ed by way o demand incen i e amoun ing o abou Rs. 3,590 mil-
lion. Phase-II mainly ocuses on suppo ing elec i ica ion o public and sha ed anspo -
a ion and aims o suppo , h ough subsidies, 7,000 e-Buses, 0.5 million e-3-wheele s,
55,000 e-4-wheele passenge ca s, and 1 million e-2-wheele s o which a budge p o i-
sion o Rs. 10,000 million o a pe iod o 3 yea s (2019–2020 o 2021–2022) has been
ea ma ked o he es ablishmen o cha ging in as uc u e ac oss he coun y(Minis y
o En i onmen , Fo es and Clima e Change, 2021).
Apa om hese ini ia i es, he Go e nmen o India ecen ly app o ed he Na ional
Mission on T ans o ma i e Mobili y and Ene gy S o age which aims o s a egically ec-
ommend ways and means o ans o m he mobili y sec o in o a low-ca bon and elec i-
ied sys em by means o policies suppo ing elec ic ehicles manu ac u ing and adop ion
(NITI, 2019). Unde his mission, a Phased Manu ac u ing P og amme (PMP) is o be
launched o p io i ise local p oduc ion ac oss he E-mobili y alue chain.
In addi ion o his, he Minis y o Powe , Go e nmen o India, has olled ou guide-
lines o se ing up cha ging in as uc u e and building an enabling and suppo i e
ecosys em o he smoo h oll-ou o elec ic ehicles (EVs) in he coun y (Minis y o
Powe , 2022a). The objec i e o hese guidelines is o enable as e adop ion o EVs,
ensu ing eliable, accessible, and a o dable cha ging in as uc u e and ecosys em,
a o dable a i s, gene a ion o employmen and income a enues, encou aging Elec ical
Dis ibu ion Sys ems o adop EV cha ging in as uc u e and p omo ion o ene gy secu-
i y. Fu he mo e, in he a e ma h o he COVID-19 pandemic, he Union Go e nmen
112 Sa hak Shukla, Shubham Thaka e, and Ragha Pachou i
expec ed o be a game change o he s eel indus y wi h he deploymen o echnolo-
gies p edominan ly hyd ogen di ec educed i on p oduc ion wi h he use o ze o-ca bon
elec ici y in Elec ic A c Fu nace.
GoI is ocusing on eplacing exis ing ossil uel wi h g een hyd ogen and i s associa ed
eeds ock. Ano he indus y is he e ilise indus y which uses ~26% (PPAC, 2020)
o he o al coun y’s na u al gas demand (wi h eliance on impo ed LNG inc easing
YoY). I is es ima ed ha ~7.5 MT o g een hyd ogen demand (IEEFA, 2022) would
be consumed by mid-cen u y in he sec o . Wi h he p o ision o wai e on elec ici y
wheeling, i would be much in e es ing o see i s scope as well as in he decen alised
p oduc ion o g een ammonia. As pe he es ima es by The Ene gy Resea ch Ins i u e,
pene a ion o hyd ogen in he key ene gy–in ensi e indus ies o India will spu he
hyd ogen demand o each 16 M in he baseline scena io and o e 21 M in low-ca bon
scena io wi h highe pene a ion o low-ca bon echnologies in he espec i e indus ial
sec o s. The impac o 16 M o g een hyd ogen p oduc ion ansla es o o e 700 TWh
o addi ional elec ici y being gene a ed, which poses a signi ican in as uc u al chal-
lenge as well as an oppo uni y o he enewable ene gy sec o in India (TERI, 2021).
Ag icul u e Sec o
The ag icul u e sec o ’s ene gy usage comes p ima ily om i iga ion. Con en ionally,
diesel gene a o se s ha e been deployed on a la ge scale o ex ac wa e o i iga ion
pu poses in ag icul u al ields. Elec i ica ion o ag icul u al i iga ion has been he ocus
o se e al policy p og ammes o he Go e nmen o India, as highligh ed in he p e ious
sec ion o his chap e .
Apa om elec i ica ion o i iga ion, he policy ocus o he go e nmen has also
encompassed upcoming echnologies such as elec ic ac o s and he deploymen o
enewable ene gy–based solu ions on ag icul u al a ms, including s andalone sola plan s
o addi ional powe and income gene a ion oppo uni ies o he a me s. Addi ionally,
adop ion o elec ic ac o s is also ano he low-hanging ui on which he go e nmen
is keen on capi alising in he nea u u e wi h he pe spec i e o educing he emission
in ensi y o he ag icul u al sec o in he coun y.
A he same ime, he e exis s c ucial challenges, speci ically he echno-economics
o elec i ica ion al e na i es is-a- is he con en ional modes o a ming. In he case
o elec ic pumps o sola -based pumps o i iga ion, he cos economics a e il ed in
a ou o con inuing diesel pumps. This is also agg a a ed by he lack o access o eli-
able powe , an issue which has la gely been add essed by means o elec i ica ion d i es
ac oss he coun y and achie ing 100% elec i ica ion. Howe e , eliable supply o qual-
i y powe s ill emains a challenge in many pocke s. In he case o sola -based pumps,
hough he e exis s a a ge ed subsidy and incen i e-based p og amme o enhancing
he adop ion o sola pumps by a me s, he e a e up on cos s ha hinde he same.
O he han his, one o he key s uc u al and legacy challenges ha hinde he adop-
ion o clean ene gy elec ic ins alla ions in he Indian ag icul u al sec o is he ac ha
landholdings a e ypically small and mos o he a ming is subsis ence a ming. Thus,
he majo i y o a me s do no ha e he inancial capi al o in es in such echnologies
which p omise o e u n bene i s g adually a e an ini ial up on in es men . Then
he e a e egula o y and adminis a i e bo lenecks in a ailing scheme bene i s, ag icul-
u al connec ions, powe supply, and p o iding documen al e i ica ion o he hos o
app o als equi ed.

Deep Elec i ica ion in India 113
Elec ici y consump ion in he yea 2020–2021 o he ag icul u al sec o s ood a
20.24% o o al elec ici y consump ion and highligh s he ene gy-in ensi e na u e o he
sec o . Wi h 11 majo DISCOMS o he coun y consuming 95% o elec ici y consump-
ion in ag icul u e and annually p o iding o e Rs. 1 lakh c o es as elec ici y subsidy o
ag icul u e, he e exis s a signi ican oo p in o ag icul u al consump ion in he powe
sec o . Addi ionally, nea ly 80 lakh pumps ou o app oxima ely 3 c o e ag icul u al pumps
ins alled in India a e diesel pumps. The o al diesel consump ion o hese pumps in a yea
wo ks ou o 5.52 billion li es pe annum along wi h equi alen CO2 emission o 15.4 mil-
lion onnes. India’s e o s owa ds sola isa ion o he ag icul u al sec o a e expec ed o
esul in educing ca bon emissions by as much as 32 million onnes o CO2 pe annum. This
is also en isioned o esul in he educ ion o impo bills on accoun o pe oleum p oduc s
h ough he educ ion o diesel usage by 1.38 billion li es pe annum (MNRE, 2019).
Residen ial
This sec o is ano he enable o adop ing and implemen ing low-ca bon elec i ica ion
measu es ha may include cooking, hea ing/cooling, and ene gy-e icien buildings. As
p e iously s a ed, cooking is p edomina ely based on i ewood and coal lea ing a huge
po en ial o g een elec ic sou ces un apped. While he Indian Go e nmen is wo k-
ing on a mission mode o enhance he co e age o LPG connec ions in households, an
inc eased usage o LPG could lead o ene gy secu i y issues along wi h challenges includ-
ing he high cos o e ill and poo access o e ill depo s. Howe e , he ansi ion o LPG
will likely esul in a lock-in o asse s as a g eene ansi ion owa ds induc ion cooking
is also on he cha s.
Deepening he ini ia i es on ene gy e iciency in he esiden ial and building sec o
can esul in signi ican a oided emission sa ings. These include ansi ioning om ai -
condi ioning o low-ca bon cooling al e na i es, g een buildings and ene gy e iciency
s anda ds being adhe ed o in he cons uc ion and ope a ions phase.
Some o he key challenges aced by he elec i ica ion and deca bonisa ion e o s in
he esiden ial sec o pe ain o he in o ma ion gap, di icul ies ela ing o he accessibil-
i y o exis ing schemes, and issues ela ed o he adminis a i e capaci y o oll ou such
inno a i e ini ia i es a such a scale, especially amongs dep i ed and unde se ed com-
muni ies, amongs o he s.
I ECBC is implemen ed igo ously h oughou India, i has he app oxima e po en ial
o sa ing 300 billion uni s o ene gy and o e 15 GW o peak demand educ ion which
would esul in a sa ing o a ound Rs. 350 billion. Subsequen ly, GHG emission educ-
ion o o e 250 M CO2 is es ima ed (Minis y o En i onmen , Fo es and Clima e
Change, 2021). While he impac and sa ings h ough he deploymen o elec ic induc-
ion s o es a e no ye quan i ied in he Indian con ex , hey a e likely o spu he elec ic-
i y equi emen om he powe sec o and en ail emission sa ings.
Thus, h ough sola isa ion o ag icul u al pumps h ough PM-KUSUM and achie e-
men o PM-UJJWALA yojana a ge s in he esiden ial sec o , emission sa ings a e es i-
ma ed o he une o 32 M CO2e pe annum and 250 M CO2e, espec i ely.
Challenges o Deep Elec i ica ion
Al hough elec i ica ion o ene gy-in ensi e economic sec o s holds as po en ial owa ds
ealising India’s clima e goals o being a ne -ze o economy by 2070, he e exis se e al
in insic and ex insic challenges ha need o be add essed.
114 Sa hak Shukla, Shubham Thaka e, and Ragha Pachou i
The i s such challenge is concep ual in na u e. Deep elec i ica ion, as a s andalone
concep , is incomple e wi hou he deca bonisa ion o he powe sec o . In he Indian
con ex , i appea s in many cases ha elec i ica ion is he end goal o a pa icula ini ia-
i e and deca bonisa ion o he powe sec o is a pa allel side- ack ac i i y. This c ea es
silos o sepa a e in e en ions and hei con e gence and alignmen owa ds he b oade
clima e goals appea s o be missing om he na a i e, planning, and implemen a ion.
Second, he economic iabili y o a ailable echnology al e na i es o elec i ica ion in
many o he sec o s is a de e en o he la ge-scale up ake o such echnologies. Mos o
he al e na i es ha e a high up on cos and hey b eak-e en a e a conside able amoun
o ime, which makes hei adop ion cu en ly suscep ible o incen i es and subsidies. A
p ima y cause o his, in many ins ances, maybe he nascency o he s age o de elopmen
o hese echnologies which adds o he cos o ope a ions, while he economic di idends
a e eaped o e a longe ime ame.
Thi d, supply chains o he manu ac u ing and dis ibu ion o such echnologies a e
dispe sed and o en agile. A coun y like India wi h signi ican esou ce cons ain s,
especially in c i ical mine als, a e ea h, and semiconduc o s, amongs o he s, is hea ily
elian on impo s om o he coun ies o de elop and dis ibu e hese echnologies. This
has a ipple e ec on he cos o p oduc ion, and hus, he e ail cos o such echnologies,
as well as a ec s he esilience o he supply chain which ge s exposed o ex e nal shocks
ha may dis up he supply chain. Co id-19 was one such shock which shed ligh on he
agili y o global supply chains.
The op-down app oach owa ds deep elec i ica ion leads o an in o ma ion gap
a ound newe elec ic echnologies. Be i EVs, o g een hyd ogen, o a m-le el sola
plan s, he b oad app oach has been o incen i ise he end use s o pick up hese echnol-
ogies by p o iding iscal and o he incen i es. This uns simul aneously wi h a a ge ha
he go e nmen has se o i sel o be achie ed. On many occasions, such an app oach
uns he isk o being pe cei ed as an ex e nal unknown p oduc being o ced down upon
he public. The e appea s o be a lack o pa icipa o y p ocesses being ollowed a he
g ass oo s le el be o e he in oduc ion o newe elec ic-based echnologies o ga ne
suppo and ensu e buy-in.
A ela ed issue is ha swi ching uels om con en ional o elec ic based is no jus
abou echnological shi s, bu also en ails beha iou al shi s a he consume end o
adop he new echnologies. The e a e e y s ong social, cul u al, and economic ac o s
ha in o m he beha iou al decision-making by any indi idual, household, o en e p ise
which needs o be cap u ed and add essed in a ca e ul manne be o e in oducing newe
echnologies which may ac as a nega i e dis up ion o he wise.
Way Fo wa d
Gi en he po en ial o a deep elec i ica ion s a egy o mi iga e ca bon emissions om
he economy along wi h he challenges i ca ies, a ou -p onged app oach is sugges ed
o deep elec i ica ion o India.
Fi s , ins ead o ocussing hea ily on add essing he supply-side issues o low-ca bon
elec ic-based echnologies, due impo ance and policy emphasis mus be gi en owa ds
esol ing demand-side bo lenecks. This implies ha he hesi a ion amongs he end use s
owa ds he adop ion o elec i ied echnologies, including beha iou al ac o s, needs o
be adequa ely add essed. Conduc ing equen wo kshops, campaigns, and e en s abou
such echnologies and hei bene i s and in o ma ion sha ing h ough in e ac i e and
Deep Elec i ica ion in India 115
e ec i e means o pilo s udies a e some o he ways h ough which con idence and
demand can be gene a ed om he g ound-up. Addi ionally, he in ol emen o po en ial
end use s as s akeholde s, ins ead o only ha ing hose g oups ha a e in o med al eady
abou he echnologies, can p o e o be ex emely bene icial when i comes o scaling-up
he adop ion.
Second, making he adop ion o elec i ica ion echnologies condi ional upon inan-
cial incen i es and subsidies can c ea e mo e p oblems han i sol es. The sus ainabili y
o e o s o deep elec i ica ion should be ensu ed while planning and implemen ing.
This may be done by cla i ying a subsidy phase-ou plan when a policy is announced o
using inno a i e inancial mechanisms in which he up on subsidy gi en is e en ually
eco e ed once he echnology becomes iable. Howe e , such ways a e subjec o hei
accep ance by he s akeholde s, especially end use s, and e o s should be con inuously
made o ha e hem on boa d while such decisions a e being made.
Thi d, be o e a egula o y amewo k owa ds he go e nance o any elec i ica ion
ini ia i e is announced, i may be pu o a sandboxing ex which can help he policymak-
e s iden i y key challenges ha may come up in he implemen a ion s age. This also p o-
ides policymake s he much-needed lexibili y o go back and make necessa y amends in
he amewo k in o de o make he ini ia i e mo e e ec i e on he g ound.
Finally, deep elec i ica ion s a egies and ini ia i es need o be con e ged and
aligned wi h deca bonisa ion ini ia i es, in le e and spi i . This implies ha he ini-
ia i e owa ds elec i ica ion o economic ac i i y o a sec o should no be limi ed o
achie ing he objec i e o elec i ica ion only bu ha e conc e e elemen s ha pe ain
o ensu ing deep deca bonisa ion o go along wi h i . Such con e gence will ensu e
a smoo h ansi ion and be e ealisa ion o he clima e goals and also p o ide cla -
i y o inancial and ma ke -le el s akeholde s owa ds in es ing in deep elec i ica ion
s a egies.
Re e ences
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Bu eau o Indian S anda ds. (n.d.). Na ional Building Code. Bu eau o Indian S anda ds. Re ie ed
Janua y 10, 2023, om h ps://www .bis .go .in /s anda ds / echnical -depa men /na ional
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Clean Ene gy Minis e ial. (2021). EV30@30 Campaign.
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-Hyd ogen -D eam _Ap il -2022 .pd
India Hyd ogen Alliance. (2021, May 10). IH2A is Commi ed o he C ea ion o A Na ional
‘Bha a H2’ Roadmap To Mee India’s Ene gy T ansi ion Goals. h ps://ih2a .com /abou -ih2a/
Ins i u e o Sus ainable De elopmen and In e na ional Rela ions. (n.d.). Deep Deca bonisa ion
Pa hways.
In e na ional Ene gy Agency. (2021). India Ene gy Ou look 2021.
IRENA. (2018). Global Ene gy T ans o ma ion: A Roadmap o 2050. h ps://www .i ena .o g/- /
media /Files /IRENA /Agency /Publica ion /2018 /Ap /IRENA _Repo _GET _2018 .pd
JMK Resea ch & Analy ics. (2022). Accele a ing T anspo Elec i ica ion in India by 2030′.
h ps://clima e ends .in /wp -con en /uploads /2022 /07 /accele a ing - anspo -elec i ica ion -in
-India -by -2030 .pd
116 Sa hak Shukla, Shubham Thaka e, and Ragha Pachou i
Li emin . (2018). 100% Railway Elec i ica ion o Double Powe Demand by 2022 | Min . h ps://
www .li emin .com /Companies /Sun i iC cxYR cSkG ON6 1TO /100 - ailway -elec i ica ion - o
-double -powe -demand -by -2022 .h ml
Li emin . (2021, June 26). Go Ex ends Fame Scheme ill 2024. Min . h ps://www .li emin
.com /news /india /go -ex ends - ame -scheme - o -p omo e -elec ic -mobili y - ill -2024
-11624688932461 .h ml
Minis y o En i onmen , Fo es and Clima e Change. (2021). India: Thi d Biennial Upda e Repo
o he Uni ed Na ions F amewo k Con en ion on Clima e Change.
Minis y o hea y indus ies. (n.d.a). Allo men made o 50 GWh o Ba e y Capaci y o 4 Success ul
Bidde s o Incen i e Unde (PLI) Scheme o Ad anced Chemis y Cell (ACC) Ba e y S o age.
Re ie ed Janua y 10, 2023, om h ps://pib .go .in /pib .go .in /P ess eleasesha e .aspx ?PRID
=1809037
Minis y o hea y indus ies. (n.d.b). FAME India Scheme Phase II.
Minis y o hea y indus ies. (2013). Na ional Elec ic Mobili y Mission Plan 2020.
Minis y o Pe oleum & Na u al Gas. (n.d.). PMUY : Abou . Re ie ed No embe 22, 2022, om
h ps://www .pmuy .go .in /abou .h ml
Minis y o Powe . (2022a). Cha ging In as uc u e o Elec ic Vehicles. Minis y o Powe ,
Go e nmen o India.
Minis y o Powe . (2022b). Na ional G een Hyd ogen/G een Ammonia Policy.
Minis y o Powe . (2022c). The Ene gy Conse a ion (Amendmen ) Bill 2022.
Minis y o Railways. (2021). Mission 100% Elec i ica ion: Mo ing owa ds Ne Ze o Ca bon
Emission.
MNRE. (2019). P adhan Man i Kisan U ja Su aksha E am U haan Mahabhiyan. h ps://mn e
.go .in /img /documen s /uploads / ile _ -1632204688401 .pd
MORTH. (n.d.). VAHAN SEWA| DASHBOARD. Re ie ed No embe 22, 2022, om h ps://
ahan .pa i ahan .go .in / ahan4dashboa d/
NITI. (2019). E-Mobili y: Na ional Mission on T ans o ma i e Mobili y and Ba e y S o age |
NITI Aayog. h ps://www .ni i .go .in /e -mobili y -na ional -mission - ans o ma i e -mobili y -and
-ba e y -s o age
NITI Aayog and RMI India. (2019). India’s Elec ic Mobili y T ans o ma ion: P og ess o Da e
and Fu u e Oppo uni ies. h ps:// mi .o g /wp -con en /uploads /2019 /04 / mi -ni i -e - epo .pd
NITI Aayog and RMI India. (2022). Ha nessing G een Hyd ogen: Oppo uni ies o Deep
Deca bonisa ion in India. h ps://www .ni i .go .in /si es /de aul / iles /2022 -06 /Ha nessing _G een
_Hyd ogen _V21 _DIGITAL _29062022 .pd
PPAC. (2020). PPAC A chi es. h ps://ppac .go .in /index .php /F on A chi es .aspx
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S an o d Uni e si y. (2015, June 8). S an o d Enginee s De elop S a e-by-s a e Plan o Con e U.S.
o Clean, Renewable Ene gy. S an o d News. h ps://news .s an o d .edu /2015 /06 /08 /50s a es
- enewable -ene gy -060815/
TERI. (2021). The Po en ial Role o Hyd ogen in India: A Pa hway o Scaling-up Low Ca bon
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_The _Po en ial _Role _o _ %20Hyd ogen _in _India .pd
UNIDO. (n.d.). Indus ial Deep Deca bonisa ion Ini ia i e | UNIDO. Re ie ed No embe 22,
2022, om h ps://www .unido .o g /IDDI
Chap e s in his sec ion deal wi h wo dis inc bu o en imes in e - ela ed hemes: one
se o chap e s analyses policies o policy amewo ks ha shape some aspec s o ene gy
ansi ion; a second se analyses issues ela ed o ins i u ional go e nance o ene gy an-
si ion, i.e., bo h he posi i e and he no ma i e. The e o e, chap e s in he sec ion gi e
eade s an o e iew o ex an policies and hei e ec i eness, as well as how hey migh
be.
Chap e 7, by Sim an G o e , Naini Swami, and V. Su esh, o eg ounds he li es and
li elihoods o people in he con ex o policy commi men s made o achie e low ca bon
pa hways. I uses he Indian Cons i u ion as a e e ence amewo k o de ine go e nance
and de elopmen p inciples o help achie e Jus Ene gy T ansi ion. I a gues ha , gi en
he coun y’s economic, social, and cul u al di e si y, a one-size- i s-all ansi ion s a -
egy would nei he be easible no desi able. Wha would be mos app op ia e is a decen-
alized and pa icipa o y go e nance egime. I a gues ha in India, gi en he s uc u al
inequali ies based on cas e and gende , “p ocedu al jus ice” a ains g ea signi icance
which canno be deli e ed by decen aliza ion alone. The e o e, i a gues ha a bo om-
up decen alized p ocess, which includes disad an aged and ma ginalised g oups, would
be necessa y o a jus ene gy ansi ion.
Chap e 8, by Sa hak Shukla and Ragha Pachou i, assesses he policy landscape wi h
ega d o ene gy ansi ion in e ms o i s objec i es, go e nance mechanisms, and ools
o egula ion and impac hus a . I hen makes key ecommenda ions eme ging om
he analysis. I a gues ha an impo an enable o policy e ec i eness will be in a- and
in e -sec o al coo dina ion. In addi ion, measu ing p og ess will be he key enable o
policy. The e o e, a eal- ime policy moni o ing mechanism is o c i ical impo ance. The
chap e has wo associa ed Appendices. The i s , Appendix 8A (Equi able Dis ibu ion
o Ma ke Risks – A C i ique o he Elec ici y Ac 2003), by Sim an G o e , a gues ha
a concep ual analysis o isk dis ibu ion may be c i ical o unde s anding he challenges
acing he elec ici y sec o . The second, Appendix 8B, (Un apped Scheme Con e gences
o P omo ing Renewable Ene gy in India), by Sayan an Dey and Vinay Jaju, a gues ha
a con e gence be ween schemes will no only ensu e he g ow h o enewable ene gy bu
also b ing co-ac ion be ween p og ammes wi h espec o implemen a ion and c ea ing
sus ainable asse s o he communi y.
Chap e 9, by M i iunjoy Mohan y, Saon Ray, and Naini Swami, analyses he ecen
eassessmen o indus ial policy bo h in heo y and p ac ice and i s applicabili y pa icu-
la ly gi en ha deca bonisa ion will in ol e echnological change. I begins by obse ing
ha indus ial policy is now being widely used by bo h de eloped and de eloping coun-
ies, pa icula ly in he con ex o g een echnology and clean ene gy. The eassessmen o
Pa 2
Go e nance and Policy Pe spec i es:
an In oduc ion
M i iunjoy Mohan y and Runa Sa ka
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-9
10.4324/9781003433088-9

118 M i iunjoy Mohan y and Runa Sa ka
Go e nance and Policy Pe spec-
i es: an In oduc ion
indus ial policy es ablishes ha pas episodes o indus ial policy ha e been signi ican ly
mo e success ul han ea lie unde s ood. I no es ha mo ing beyond ma ke ailu es, he
s a e has an en ep eneu ial ole o play in educing Knigh ian unce ain y, pa icula ly in
he con ex o echnological change. The chap e has an associa ed Appendix. Appendix
9A (In-si u Powe Gene a ion in U ban Space o End Use s), by A una a Ghoshal dis-
cusses he ole o policy and policy con e gence in s imula ing he scaling up o oo op
sola powe gene a ion and use.
Chap e 10, by Madhu a Joshi and Swa i Dsouza, analyses challenges, p ocesses,
and pa hways ha ha e led o dialogue and legisla ions on coal phaseou s and Jus
T ansi ions in Sou h A ica, Ge many, Poland, and he USA. I also d aws lessons om
hese expe iences o India’s planned coal phasedown. I a gues ha wha e e may be
he sho - e m p essu es, he phasing ou o coal is ine i able. Tha being so, i is much
be e o plan o i a he han be aced wi h he social and economic disloca ion o a
s eep decline in coal use and p oduc ion. This is all he mo e so gi en ha he expe ience
o coun ies ha ha e unde gone phaseou s ells us ha ansi ion pa hs end o be bo h
long and unce ain. In Ge many’s Ruh Valley, i ook mo e han 40 yea s o egain i s
ea lie le els o economic ac i i y. Unemploymen in coal-p oducing egions in he UK
emained highe han he o he egions un il 2008. In Sou h A ica, i ook mo e han
10 yea s jus o a i e a a consensus on he way o wa d. Planning he e o e is absolu ely
cen al o he e ec i eness o a Jus T ansi ion.
Chap e 11, by Jahna i G. Pai, Munna Jha, and Vinu a Gopal, is a bo om-up iew
o ene gy ansi ion, especially om ha o ma ginalised communi ies whose li es and
li elihoods depend on coal. I makes a case o including he oices o he local com-
muni ies in he discou se a ound ene gy ansi ion and he pa hways ahead. I a gues
ha he expe ience o Jha khand and Ke ala (de ailed in he associa ed Appendix 11A)
es ablishes ha bo h in a poo mining s a e (Jha khand) and a ela i ely p ospe ous non-
mining s a e (Ke ala), he key o e ec i ely coping wi h clima e change was ela i ely
au onomous G am Panchaya s wi h empowe ed local poli ical leade ships willing o con-
side al e na i es be e sui ed o hei a eas. Appendix 11A (Decen alised Elec ici y
Gene a ion Using Roo op Sola : A Case S udy o Pe injanam Village), by Ha i Subbish
Kuma Sub amanian, discusses he illage o Pe injanam, a classic example o empow-
e ed local sel -go e nance, leading o a success ul model o decen alised oo op sola
powe gene a ion a he Panchaya le el.
7
Ene gy T ansi ion and Jus ice
Ene gy ansi ion is no jus abou echnological change in ene gy p oduc ion bu c u-
cially includes and en enches a ansi ion in consume beha iou , ins i u ions, and hei
powe , in as uc u e, and cul u al discou ses (Williams & Doyon, 2019). The global
uel (oil and gas) c isis igge ed by he Uk aine–Russia con lic has highligh ed, once
again, he complica ions o in e na ional geopoli ics and i s en anglemen s wi h global
and egional ene gy secu i y. In he p esen con ex , ene gy p oduc ion om ex ac i e
sou ces and en enchmen o in es men s in ene gy asse s a e p essing conce ns o ci i-
zens and ins i u ions o so e eign na ions.
Coal mining’s dele e ious en i onmen al impac is well documen ed. Recen esea ch
p esen s compelling e idence agains open-cas mining ac i i ies om mul iple dis ic s
ac oss India (Ranjan, 2019). Land clea ing and mining ope a ions emo e na u al ege-
a ion and e ile opsoil, lea e pe manen sca s on he landscape, impo e ish soil quali y,
and d as ically change ecosys ems’ bio ic and abio ic componen s (Mish a & Das, 2017).
A 2016 epo highligh s ha coal mining ac i i ies in India ha e caused he displacemen
o 87,000 people since 1973, including 14,000 Adi asis (Amnes y In e na ional, 2016).
Does a clean ene gy ansi ion o e an al e na i e de elopmen pa adigm which is
en i onmen ally non-ex ac i e and socially inclusi e?
The eme ging e idence sugges s o he wise. Renewable ene gy p ojec s a e epo ed as
si es o con lic be ween local communi ies and p ojec de elope s (Agga wal, 2021). In
Rajas han, he Sup eme Cou ’s o de , o ins all bi d di e e s on he high- ol age lines
and o mo e hem unde g ound in iden i ied c i ical egions (M.K. Ranji sinh Union o
India , 2019) when he a ian popula ion was endange ed because o con ac wi h high-
ol age lines o he upcoming enewable ene gy powe plan s, is ye o be implemen ed.
Fu he , a cen al issue a he hea o ene gy ansi ion is i s impac on li elihoods.
The coal economy employs only 4.7 million people di ec ly ac oss he globe bu suppo s
a much la ge numbe o indi ec jobs and li elihoods, cu ing deeply ac oss sec o al
alue chains o many indus ies (Wo ld Bank, 2021). Clean ene gy ansi ion na iga es
complexi ies a he in e sec ion o co po a e in e es s, s a e p io i ies, and li es and li eli-
hoods o people; ensh ining social and en i onmen al jus ice in he ene gy ansi ion is a
ma e o human decency and digni y. Chap e 20 del es deepe in o he concep o Jus
T ansi ion and wha i means o all s akeholde s.
Fo India, clean ene gy ansi ion p o ides an oppo uni y o shape new pa adigms
o de elopmen and g ow h, whe e he need o a “Jus T ansi ion” akes cen e s age.
Gi en he unique social, cul u al, his o ical, and economic con ex o India, he consensus
7
Go e nance P inciples o a Jus Ene gy
T ansi ion
Sim an G o e , Naini Swami, and V. Su esh
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-10
10.4324/9781003433088-10
120 Sim an G o e , Naini Swami, and V. Su esh
on he ision o “Jus T ansi ion” and p inciples ha may be adop ed o achie e he same
equi e a b oade poli ical ecogni ion and accep ance.
In he ollowing sec ions, we delibe a e on some such go e nance p inciples o a
jus ene gy ansi ion by explo ing he c i ical domains o labou and en i onmen al
go e nance.
Labou Go e nance and Jus T ansi ion
The Jus T ansi ion o he wo k o ce is inex icably linked o he c ea ion o decen wo k
and quali y jobs in acco dance wi h na ionally de ined p io i ies (Uni ed Na ions, 2015).
The decen wo k agenda is a long-s anding goal o he In e na ional Labou O ganiza ion
(ILO) as well. B oadly, i e e s o “access o ull and p oduc i e employmen wi h igh s
a wo k, social p o ec ion, and he p omo ion o social dialogue” (ILO).
The ILO Decla a ion on Social Jus ice o a Fai Globaliza ion ecommends membe
s a es o lay down mechanisms o measu ing decen wo k indica o s (ILO, 2008). In
pu suance o he same, an expe body o he ILO adop ed a amewo k o Decen Wo k
Indica o s co e ing en subs an i e elemen s ela ing o he ou s a egic pilla s o ILO’s
Decen Wo k Agenda: (i) employmen c ea ion, (ii) social p o ec ion, (iii) igh s a wo k,
and (i ) social dialogue. The en subs an i e elemen s o decen wo k agenda a e employ-
men oppo uni ies; adequa e ea nings and p oduc i e wo k; decen wo king ime; com-
bining wo k, amily, and pe sonal li e; wo k ha should be abolished; s abili y and secu i y
o wo k; equal oppo uni y and ea men in employmen ; sa e wo k en i onmen ; social
secu i y; and social dialogue and employe s’ and wo ke s’ ep esen a ion (ILO). The legal
indica o s o decen wo k co e ma e ni y p o ec ion (including weeks o lea e, eplace-
men a e, and co e age), pa e ni y and pa en al lea es, maximum hou s o wo k and paid
annual lea e, and minimum wage se ing p ocedu e and le el (ILO, 2013).
The salience o he decen wo k agenda is ei e a ed in he guidelines o a Jus
T ansi ion owa ds en i onmen ally sus ainable economies and socie ies (ILO, 2015),
whose key ecommenda ions a e:
• In eg a ion o social dialogue, including adequa e, in o med, and ongoing consul a-
ion in o he ins i u ional amewo k a all le els.
• Recogni ion, p omo ion, and ealiza ion o undamen al p inciples and igh s a wo k.
• Recogni ion o he s ong gende dimensions o en i onmen al challenges and oppo -
uni ies and he c ea ion o speci ic policies o add ess he same.
• Cohe ence in economic, en i onmen al, social, educa ion/ aining, and labou policies.
• C ea ion o a Jus T ansi ion amewo k o c ea ing decen jobs, an icipa ing employ-
men impac s, adequa e and sus ainable social p o ec ion o job losses and displace-
men , skill de elopmen , and social dialogue, including he e ec i e ealiza ion o he
igh o o ganize and ba gain collec i ely (ILO, 2015).
Unde s anding he Indian Wo k o ce
The wo k o ce in India is b oadly classi ied in o h ee ca ego ies: sel -employed, egula
wage/sala ied, and casual wo ke s. An analysis o he PLFS Annual Repo 2019–2020
shows ha amongs he h ee ca ego ies, he majo i y o India’s wo k o ce comp ises
sel -employed people (53.5%), ollowed by casual wo ke s o ming 26.3%, and only
18.2% who a e egula wage o sala ied wo ke s (NITI Aayog, 2022). The labou laws
Go e nance P inciples o a Jus Ene gy T ansi ion 121
segmen he wo k o ce in o in o mal and o mal wo ke s and he labou ma ke in o
o ganized and uno ganized sec o s.
Toge he , he in o mal wo ke s and uno ganized sec o s o m he coun y’s in o mal
economy, whe e wo ke s a e excluded om he bene i s o o mal con ac s, paid lea e,
and social secu i y bene i s. The e is pe sis en concep ual ambigui y in classi ying in o -
mal and o mal wo ke s and o ganized and uno ganized sec o s. The dispa i ies a ising
om he absence o legal p o ec ion o in o mal wo ke s a e conside ed a undamen al
go e nance law (Shyam Sunda , 2019).
E idence sugges s ha he co e age o social secu i y schemes amongs economically
and socially ulne able sec ions has emained poo . While egula wo ke s a e la gely
co e ed by he p o iden und egime, he g owing segmen o casual and con ac wo k-
e s, e en in he o ganised sec o , appea o be disc imina ed agains . The en i e sel -
employed wo k o ce is inhe en ly excluded. Al hough he s a u o y p o isions o he
p o iden und a e supposed o be applicable uni e sally amongs indus ies speci ied in
Schedule I, he e idence clea ly poin s o a dismal s a e o a ai s (Sak hi el & Jodda ,
2006).
Seasonal and ci cula labou mig an s o m a g owing segmen o he in o mally
employed. Poo and low-cas e wo ke s o m a disp opo iona e p opo ion o such
wo ke s comp ising he lowes ung o labou a o ganised sec o wo k si es. They a e
segmen ed and agmen ed by he ec ui men p ocess and along he lines o cas e, sex,
e hnici y, language, and egion. This segmen a ion and agmen a ion c ea e he basis o
capi al o acqui e low-cos , highly lexible labou , who wo k long hou s and ake up he
mos dange ous wo k. Gende -based labou segmen a ion builds on he cul u ally de e -
mined social ep oduc ion esponsibili ies o emale wo ke s and o he socio-cul u al
ac o s (S i as a a, 2019).
As a as he co e age o social secu i y schemes is conce ned, 85% o wo ke s om
non- a m sec o belonging o he ca ego y o SCs and OBCs do no ha e social secu i y
bene i s. Fo he o he ca ego ies, i s ands a 75%. Amongs he uno ganised segmen o
wo k o ce, he e is ha dly any co e age o social secu i y schemes. Fo ins ance, co e age
o he Wo kmen’s Compensa ion Ac which p o ides o secu i y and medical ea men
in he con ex o occupa ional and wo kplace acciden s and mishaps is no a ailable o
he bulk o wo ke s in he in o mal and causal labou segmen . Es ima es o he o gan-
ised segmen sugges ha 85–90% o he wo k o ce belonging o he ca ego y o STs
and o he s a e co e ed unde social secu i y schemes, bu co e age o SCs and OBCs is
lowe , being less han 80% o OBCs (Sak hi el & Jodda , 2006).
India and he ILO Con en ions
India is a ounding membe o ILO and has con ibu ed signi ican ly o se ing ILO
s anda ds, which ha e subs an i ely in luenced i s labou go e nance. India has a i ied
47 con en ions co e ing 15 subjec s. Fundamen al ILO Con en ions a i ied o igno ed
by India a e lis ed in Table 7A.1. Howe e , o he 47 Con en ions and 1 P o ocol a i-
ied by India, 38 a e in o ce, 5 Con en ions ha e been denounced,1 and 5 ins umen s
ha e been ab oga ed2. F om he ILO con en ions ele an o Jus T ansi ion, India has
a i ied 10 o he 25 ins umen s. Social secu i y, social policy, occupa ional sa e y and
heal h, and labou ela ions emain neglec ed subjec s in he exis ing a chi ec u e o bind-
ing ILO s anda ds accep ed by India (ILO, 2015). Table 7A.2 p o ides a de ail o he Jus
T ansi ion con en ions accep ed by India.
224 Saa hak Khu ana e al.
SWOT – PSU Pe spec i e
The inhe en s eng hs o Indian PSUs like NTPC and CIL include hei s ong
inancial posi ions wi h cash balance, dominan ma ke posi ions, Go e nmen o
India suppo , and la ge skilled wo k o ces. Amongs he key weaknesses ha hey
ace owa ds di e si ying hei business a e o ganisa ional ine ia owa ds exis ing
co e businesses and lack o expe ience wi h ino ganic g ow h. Conside ing oppo -
uni ies and h ea s in he ma ke such as apid g ow h in RE, in e na ional com-
mi men s o educing emissions, and g owing cos compe i i eness o s o age, PSUs
could conside businesses up and down he alue chain o hei co e business o
di e si ica ion.
Po e ’s Diamond F amewo k-Based Assessmen o Policy and Go e nmen Suppo o
Business Enablemen
Po e ’s Diamond amewo k helps iden i y he compe i i e ad an ages amongs busi-
nesses o indus ies which ope a e in a egula ed en i onmen and do no enjoy open/ ee
ma ke condi ions. The amewo k does so by ac o ing in go e nmen suppo h ough
a ious egula ions and policies by conside ing ou majo ac o s o de e mine he com-
pe i i eness o a speci ic indus y in a coun y: ac o condi ions; demand condi ions;
ela ed and suppo ing indus ies; and i m s a egy, s uc u e, and i al y along wi h he
go e nmen in luence on hese ac o s. The analysis can be applied o each in es men
segmen iden i ied unde SWOT o he espec i e PSUs o de elop business segmen -le el
p io i ies.
Fac o Condi ions
Fac o condi ions ep esen he ac o s (inpu s) a ailable in he coun y o enhance he
compe i i e ad an age o he indus y. A ailabili y o na u al esou ces domes ically on
which indus y has a majo dependency, adequa e in as uc u e de elopmen by he
go e nmen o assis he indus y, and ease o inancing he p ojec s h ough p e e en ial
capi al a e he ac o s ha may be conside ed in he app oach.
Demand Condi ions
Demand condi ions de ine he na u e o domes ic demand o he p oduc o he se ices
p o ided by a pa icula indus y. The e a e b oadly h ee signi ican ac o s ha may
be conside ed in he app oach: domes ic ma ke size, policy and egula o y suppo by
he go e nmen o de elop he demand o he p oduc , and he numbe o business- o-
business cus ome s o es ima e ma ke demand.
Rela ed and Suppo ing Indus y
This aspec de ines he p esence o a ious suppo ing indus ies ha can con ibu e o
he alue chain o a speci ic indus y by sha ing in e sec o al ac i i ies. Fac o s ha may

Fu u e-P oo ing India’s Coal PSUs 225
be conside ed a e adequa e a ailabili y o supplie s which d i es ma ke compe i ion and
inno a ion, incen i es o supplie s by he go e nmen o d i e he g ow h in p oduc ion,
and in e na ional compe i i eness o he supplie o access i s global ma ke accep ance
in e ms o p oduc pe o mance and p icing.
Fi m S a egy, S uc u e, and Ri al y
This dimension de e mines he i m’s s a egic alignmen wi h speci ic indus y and
ma ke compe i i eness. Fac o s ha may be conside ed a e: o ganisa ional a ge s
o de e mine i s alignmen wi h he business, ini ia i es, and ac ions unde aken by
he i m o ma ke pene a ion ( o ma ion o subsidia ies) and unde s anding (pilo
p ojec s and MoUs) and he numbe o playe s in he ma ke o e alua e ma ke
compe i i eness.
Go e nmen
Go e nmen policies and egula ions ha e a di ec and indi ec in luence on he h ee
de e minan s o de e mine compe i i eness: ac o condi ion, demand condi ion, and
ela ed and suppo ing indus y. Th ough a ious policies and egula ions, go e nmen
may in luence ac o condi ion by de eloping suppo ing in as uc u e, demand condi-
ion by de eloping demand o he p oduc , and ela ed and suppo ing indus y by p o-
iding incen i es o a ac businesses in he segmen and inc ease ma ke compe i i eness.
F amewo k
To iden i y he a ac i eness o he indus y o each PSU, a weigh o 5 may be assigned
o each o he ou condi ions adding up o 20. A a ing scale wi h alues 0–2 and 0–1
may be conside ed o each o he sub-condi ions, depending on he ange o esponses; a
highe a ing indica es ha he e is a highe deg ee o compliance wi h ha ac o . On a
a ing scale wi h alues o 0–2, a sco e o 1 signi ies limi ed ag eemen wi h he pa icula
ac o . An illus a i e example is p o ided in Table 13.1.
Go e nmen suppo o he indus y may also ha e an indi ec weigh age o 5. Adequa e
suppo ing in as uc u e om ac o condi ion, incen i ising policy o demand c ea ion
in demand ac o , and p oduc ion-linked incen i es o he supplie in he ela ed and
suppo ing indus y can ha e a weigh age o 1, 2, 2, espec i ely, which po ays he
go e nmen suppo o he indus y o de e mine na ional compe i i eness o a pa icula
indus y (see Figu e 13.9).
Po e ’s Diamond PSU Pe spec i e
Mos o he business segmen s in which he PSUs ope a e a e egula ed and a e
signi ican ly in luenced by go e nmen p io i ies. Business segmen s like enewable
ene gy, e-mobili y solu ions, and ene gy s o age a e also some o he business seg-
men s o ha e go e nmen suppo , and he e o e PSU s a egies may be aligned
o in es ing in he same. The e o e, Po e ’s diamond analysis eme ges as a use ul
amewo k o iden i ying business segmen s’ a ac i eness as i ac o s in he in lu-
ence o go e nmen policies, a ge s, and decisions.
226 Saa hak Khu ana e al.
Mechanism o Iden i ica ion o Sui able Businesses wi hin he Iden i ied Business
Segmen s
Mul i-c i e ia Decision Analysis o Iden i y Sui able Business Di e si ica ion wi hin he
Business Segmen
To de e mine he sui able business o di e si ica ion o each PSU wi hin he busi-
ness segmen , mul i-c i e ia decision analysis (MCDA) app oach may be applied con-
side ing a ious en i onmen al, economic, and echnical ac o s. MCDA p o ides
Go e nmen (indi ec 5)
Demand Condi ions (5)
Domes ic Ma ke Size ($ Bn) - 2
Incen i ising Policy (Y, N, L) – 2
# o B2B cus ome s (>3,<3) - 1
Fac o Condi ion (5)
Domes ic na u al esou ce
adequacy (Yes, No, Limi ed) - 2
Adequa e suppo ing in a (Y, N) - 1
Access o p e e en ial capi al
(Y,N,L) - 2
S a egy, S uc u e and Ri al y (5)
Company Ta ge (Y,N) – 1
Ini ia i e/Ac ion (MoU, Pilo e c.) - 2
# o compe i o s (<2, 2, >2) -2
Rela ed & Suppo ing Indus y (5)
Adequa e domes ic supplie s (Y,N,L) – 2
Incen i es o supplie s (Y,N,L) – 2
In l compe i i eness o supplie s (Y/N) - 1
Figu e 13.9 S uc u e o Po e ’s diamond analysis.
Sou ce: Clima e Policy Ini ia i e.
Table 13.1 De e minan s o Po e ’s diamond analysis
De e minan s Response Weigh
Fac o condi ion 5
Domes ic na u al esou ce adequacy Yes, no, limi ed 2
Adequa e suppo ing in as uc u e Yes, no 1
Access o p e e en ial capi al Yes, no, limi ed 2
Demand condi ion 5
Domes ic ma ke size USD billion 2
Incen i ising policy o demand c ea ion Yes, no, limi ed 2
No. o B2B cus ome s Less han h ee o mo e 1
Rela ed and suppo ing indus y 5
Adequa e domes ic supplie s Yes, no, limi ed 2
P oduc ion-linked incen i es o supplie s Yes, no, limi ed 2
In e na ional compe i i eness o supplie s Yes, no 1
S a egy, s uc u e, and i al y 5
Company a ge Yes, no 1
Ini ia i e/ac ion aken (pilo s, MoU, e c.) Yes, no 2
Numbe o ma ke compe i o s <2, 2, >2 2
Sou ce: Clima e Policy Ini ia i e.
Fu u e-P oo ing India’s Coal PSUs 227
a compa a i e sui abili y assessmen o businesses wi hin an iden i ied segmen by
weigh ing a ious c i e ia o e lec hei ela i e impo ance and sco ing each busi-
ness op ion acco ding o a ing on iden i ied c i e ia o e alua e in es men po en ial.
Fac o s ha may be conside ed in MCDA can be classi ied in o wo c i e ia ca ego ies:
quali ying c i e ia and sco ing c i e ia. Conside ing hese ac o s, sui able businesses
can be iden i ied o di e si ica ion o mi iga e ene gy ansi ion isks and deca bonise
hei business ope a ions.
Quali ying C i e ia
The quali ying c i e ia aim o se e as a checklis ha can inspi e he de elopmen
o business di e si ica ion and deca bonisa ion s a egy based on echnical ma u i y,
go e nmen suppo in he o m o policy, and ca bon mi iga ion po en ial. Businesses
ha mee h eshold equi emen s may u he be conside ed in he sco ing c i e ia o
di e si ica ion.
Sco ing C i e ia
The sco ing c i e ia gi e guidance on how he iden i ied businesses may be anked based
on he sui abili y o di e si ica ion, conside ing ac o s like in es men po en ial, e u n
on equi y, and business- ela ed isk o e alua e in es men po en ial.
F amewo k
A business, o be conside ed sui able unde his p oposed amewo k o di e si ica ion,
wi h an aim o deca bonise business ope a ions, should sa is y all he ollowing ac o s:
a. Technology ma u i y – Comme cial iabili y o he speci ic echnology ela ed o he
business demons a ed success ully ei he domes ically o globally.
b. P esence o policy suppo – Di ec and indi ec suppo o he business om he go -
e nmen be p esen in he o m o policies, egula ions, and incen i es.
c. Ca bon mi iga ion po en ial – Business ope a ions be ca bon neu al o ha e ca -
bon mi iga ion po en ial o assis ca bon-mi iga ing business by p o iding suppo ing
in as uc u e and sha ing in e sec o al ac i i ies.
Table 13.2 Quali ica ion c i e ia
Fac o s Yes Pa ial yes No
Technology
ma u i y Ad anced domes ically In e na ionally ad anced Technology demon-
s a ion s age
P esence o
policy suppo Policies and incen i es
p esen in suppo o he
business
Indi ec p esence o
policy suppo and
incen i es
Absence o suppo -
ing policies and
incen i es
Ca bon mi iga-
ion po en ial Business wi h ca bon-mi i-
ga ing po en ial Ca bon neu al business
and ca bon mi iga ion
assis ing business
Ca bon emi ing
business
Sou ce: Clima e Policy Ini ia i e.
228 Saa hak Khu ana e al.
A business o be conside ed o u he e alua ion unde he p oposed amewo k should
sa is y all he abo e-men ioned ac o s. To gain an o e all imp ession o he business
and o ank he businesses in o de o sui abili y o di e si ica ion, he ollowing sco ing
c i e ia may be conside ed:
a. Domes ic in es men po en ial – This is de e mined using a ious na ional a ge s and
p ojec ed domes ic demand. Sizeable ma ke /in es men po en ial p opels business
g ow h and p o ides oppo uni ies o ma ke pene a ion and g ow h o he ma ke
playe s.
b. Re u n on equi y – This can be de e mined om indus y a e ages, egula ed e u ns,
and expe inpu s (in new businesses). The highe he e u n, he mo e luc a i e he
business o sha eholde s.
c. Business isk
i. Capi al wo k-in-p og ess (CWIP) pe iod – CWIP e e s o he ime equi ed o
he cons uc ion o he p ojec . As he beginning o he eco e y o he cos hap-
pens a e he CWIP pe iod, a lowe CWIP pe iod would be encou aging.
ii. Ma ke compe i ion – Compe i i e ma ke esul s in a all in p ice and educes
p o i ma gins. Compe i ion in business can also sh ink a company’s ma ke
sha e. The e o e, lowe ma ke compe i ion would be desi able.
iii. O ganisa ional expe ience – Ini ia i es unde aken by he o ganisa ion h ough
business in es men s, MoUs, pilo p ojec s, and join en u es demons a e
o ganisa ion’s willingness and expe ience.
i . Impo dependency – A business becomes mo e ulne able o geopoli ical isks
and o eign exchange ola ili y isks wi h high impo dependency. This builds
upon he go e nmen ’s A mani bha Bha a ini ia i e and he e o e low impo
dependency would be desi able.
To ank he businesses by sui abili y o di e si ica ion, each c i e ion can be assigned
desi ed weigh age and a a ing scale o 0–5 can be conside ed. Conside ing he ange o
esponses, a highe a ing would indica e ha he e is a highe deg ee o compliance wi h
hose ac o s in suppo o he business.
MCDA – PSU Pe spec i e
This MCDA goes deepe in o business-le el analysis and conside s c i ical ac o s
o hese PSUs such as policy suppo , ca bon mi iga ion and echnology ma u i y.
These a e c i ical o PSUs as hey a e owned by he go e nmen and need o emain
aligned o he di ec ion o public policy, including on ini ia i es like A mani bha
Bha a and commi men s on ca bon mi iga ion. Also, PSUs need o be mo e mind-
ul han p i a e sec o pee s when en u ing in o new businesses on accoun o hei
lowe isk appe i es, he eby a p e e ence o lowe isk ma u e echnologies.
G ow h–Sha e Ma ix Analysis o De e mine Sui able Business Po olio
The g ow h–sha e ma ix (BCG, 1970) may be applied o de e mine a s a egic busi-
ness po olio o di e si ica ion. The g ow h–sha e ma ix classi ies businesses in o
ou di e se g oups based on he a ac i eness o he indus y and i s compe i i e posi-
ion, classi ied as “Pe , Ques ion ma k, Cash cow, and S a .” This p oposed amewo k
Fu u e-P oo ing India’s Coal PSUs 229
cha ac e ises businesses on he basis o expec ed g ow h a es and likely ma ke sha e
o e a 2×2 ma ix cap u ing po en ial o classi y hem in he ou g oups men ioned.
“Pe ” businesses a e likely o ha e bo h low g ow h a es and low ma ke sha e. These
businesses may he e o e gene a e limi ed e enues which would be equi ed o main ain
hei ope a ions. The e would be limi ed chances o hese businesses o g ow bigge o
mo e p o i able in nea u u e.
“Ques ion ma k” businesses a e likely o ha e high g ow h a es bu low ma ke
sha es. These businesses can explo e un apped oppo uni ies and may be a ac i e
because o he high ma ke g ow h hey enjoy. Howe e , hese businesses would need o
cap u e signi ican sha es o hei espec i e ma ke o hem o be aluable.
“Cash cow” businesses a e likely o ha e low g ow h a es bu a high ma ke sha e.
These businesses can o e s able sou ces o e enue o he o ganisa ion. As hese busi-
nesses ha e low g ow h, hey may no be able o powe he o ganisa ion’s g ow h ambi-
ions, bu because o hei high ma ke sha e, hey can gene a e signi ican e enue, which
can be u ilised o de eloping o he businesses wi hin he i m.
“S a ” businesses a e likely o ha e bo h high g ow h a es and a high ma ke
sha e. These would be highly a ac i e businesses ha gene a e a la ge amoun o
e enue by le e aging hei success ul ma ke dominance s a us. Bu o achie e his
s a e, hese businesses may also equi e signi ican capi al in es men o sus ain he
g owing ma ke .
The g ow h–sha e ma ix can o e a powe ul and compac pic u e o he s eng hs
o businesses in he i m’s po olio by iden i ying he capaci y o each business o gene -
a e e enues and also e ealing he equi emen o in es men o each business, he eby
assis ing in balancing he i m’s inancial low by assessing he dis inc cha ac e is ics o
each business and sugges ing s a egic di ec ions o each business.
While de eloping he i m’s business po olio o mo e han one pe iod, mo emen
o businesses wi hin he g ow h–sha e ma ix can also be conside ed. The ideal sequence
may be one whe e a “ques ion ma k” business cap u es he ma ke o become a “s a ”
a he i s s age, and in he second s age he e may be sa u a ion leading o a decline in
g ow h a e bu e aining o compe i i e s eng hs equi ed o become a “cash cow.” In
he inal s age, a business may lose i s ma ke ele ance and become a “pe ,” and he i m
could conside di es ing om such businesses.
An e ec i e s a egy o expedi ing he p ocess o business di e si ica ion and de el-
oping a sui able business po olio may emphasise businesses whe e he e is a s ong
g ow h a e accompanied by po en ial o achie e high ma ke sha e (“s a ” businesses
and “ques ion ma k” businesses which may become “s a ”) (see Figu e 13.10).
G ow h–Sha e Ma ix – PSU Pe spec i e
NTPC (wi h i s subsidia ies) has a 27% sha e o India’s he mal ins alled capaci y
and gene a ed 24% o he o al coun y’s elec ici y gene a ion du ing 2021–2022.
CIL ca e s 80% o i s o al supply o he powe sec o and p oduces o e 83% o
he coun y’s o al coal ou pu . PSUs enjoy a dominan ma ke sha e and a e likely
o in es s a egically in he businesses o es ablish hei p esence as a ele an ma -
ke playe and main ain hei economic ele ance. The g ow h–sha e ma ix can
ac o he ime sensi i i y o a business conside ing ela ed ma ke sha e and g ow h
o e a conside able pe iod o help de elop a business po olio o PSUs by guiding
in es men in o businesses ha may o e high g ow h and la ge ma ke sha e.

230 Saa hak Khu ana e al.
Recommenda ions and Way Fo wa d
Business Recommenda ions
Conside ing his global shi , along wi h India’s clima e commi men s, PSUs like CIL
and NTPC will need o ac o in he ansi ion-linked impac s on hei businesses and
g ow h plans. Such di e si ica ion would no only de- isk he long- e m inancial posi-
ion, pa icula ly cash lows, bu also p o ide he oppo uni y o become a lead change
make and he eby uphold hei dominan posi ion in he ene gy and economic sphe e o
India. Keeping his in conside a ion, key ecommenda ions o s a egic ealignmen a e:
• Add essing clima e- ela ed physical and ansi ion isks by e alua ing exis ing and
planned in es men in asse s judiciously, ac o ing in hei long- e m po en ial and
necessa y cos s on ansi ion echnologies o u u e ma ke compliance.
• Remaining ele an and main aining compe i i eness by p io i ising low-ca bon
in es men s a an ea ly s age o gain ma ke dominance o deli e sus ained g ow h
and a oid compe i i e p essu es.
• Inco po a ing na ional a ge s in business s a egy and leading he change by imbib-
ing he go e nmen ’s ini ia i es, a ge s, and clima e commi men s alongside hei
objec i es o uelling he coun y’s g ow h and ensu ing i s ene gy secu i y.
Way Fo wa d
Any s a egic ac ion and in es men decisions aken by he coun y and in u n by hese
public sec o en e p ises o deca bonise hei ope a ions will ha e a signi ican impac on
he pace o India’s ansi ion o a low-ca bon economy. Indian PSUs can le e age hei
cu en posi ion o in es and gain dominance in businesses likely o bene i om ansi-
ion. Riding on he g owing policy suppo and a s ong inancial base, e o mula ion o
exis ing and u u e business models could lead o signi ican s a egic ad an ages. Such
STAR
CASH COWPET
QUESTION MARK
High
High
Low
G ow h
Ma ke Sha e
?
$
Figu e 13.10 G ow h sha e ma ix o de e mine sui able business po olio.
Sou ce: Rec ea ed om: BCG (1970).
Fu u e-P oo ing India’s Coal PSUs 231
di e si ica ion would no only de- isk hei long- e m inancial posi ion o he PSUs, pa -
icula ly cash lows, bu also p o ide hem he oppo uni y o become a lead change make
and he eby uphold hei dominan posi ion in he ene gy and economic sphe e o India.
Re e ences
Agga wal, P., Goel, S., Laan, T., Meh a, T., Pan , A., Raizada, S., Viswana han, B., Viswamohanan,
A., Bea on, C., & Ganesan, K. (2022). Mapping India’s Ene gy Policy 2022. IISD & CEEW.
h ps://www .iisd .o g /publica ions /mapping -india -ene gy -policy -2022.
BCG. (1970). Ou His o y: BCG. Re ie ed om BCG websi e: h ps://www .bcg .com /abou /
o e iew /ou -his o y /g ow h -sha e -ma ix.
CIL. (2022a). Abou Us. Coal India Limi ed. h ps://www .coalindia .in /abou -us/
CIL. (2022b). Annual Repo & Accoun s 2021–2022. Coal India Limi ed. h ps://www .coalindia
.in /media /documen s /Annual _Repo _Coal _India _Delux _English _To al _Book _21 .09 .2022
_REduce .pd
CPI. (n.d.). Planned Publica ion – Fu u ep oo ing India’s Public Sec o En e p ises. Clima e Policy
Ini ia i e.
Golechha, A., Raman, A., S i as a a, A., Bassi, A. M., & Pallaske, G. (2022). A G een Economy
Model o India: Technical Summa y o Me hods and Da a Used. Wo ld Resou ces Ins i u e.
h ps://www .w i .o g / esea ch /g een -economy -model -india - echnical -summa y -me hods -and
-da a -used
Goswami, S. (2022, No embe 3). NTPC o Awa d Con ac s o 4.8GW Coal Powe P ojec s
in Nex Th ee Yea s. Moneycon ol. h ps://www .moneycon ol .com /news /business /companies
/n pc - o -awa d -con ac s - o -4 -8gw -coal -powe -p ojec s -in -nex - h ee -yea s -9429361 .h ml
IEA. (2021). India Ene gy Ou look 2021. h ps://www .iea .o g / epo s /india -ene gy -ou look -2021
IEA. (2022). Coal in Ne Ze o T ansi ions. In e na ional Ene gy Agency. h ps://www .iea .o g /
epo s /coal -in -ne -ze o - ansi ions
Köbe le, A. C., Sh imali, G., Mi al, S., Jindal, A., & Dono an, C. (2020). Ene gy in T ansi ion
Coal, Sola , and India’s Nex Decade. Impe ial College Business School. h ps://imp e ia lcol lege
london .app .box .com /s /pgd 0lw4 j z2 n77 ekj1 xuee z6hk 1km
MoC. (2022). Ac ion Plan o 2022–23 (p. 37). Minis y o Coal. h ps://coal .nic .in /si es /de aul /
iles /2022 -05 /31 -05 -2022a -wn .pd .
MoF. (2022). Lis o Maha a na, Na a na and Mini a na CPSEs. Depa men o Public
En e p ises. h ps://dpe .go .in /si es /de aul / iles /Lis _o _Maha a na _Na a na_& _Mini a na
_CPSEs _Feb _2022 .pd
NTPC. (2022). 46 h In eg a ed Annual Repo 2021–22. NTPC Limi ed. h ps://www .n pc .co .in /
si es /de aul / iles /downloads /Annual -Repo -2021 -22 .pd
NTPC. (2022, No embe 21). Abou Us. h ps://www .n pc .co .in /en /abou -us
Po e , M. E. (1998). Compe i i e Ad an age o Na ions. The F ee P ess.
Raizada, S., Laan, T., Manish, M., & Viswana han, B. (2022, Decembe ). Mapping India’s Ene gy
Policy 2022: Decembe 2022 Upda e. In e na ional Ins i u e o Sus ainable De elopmen .
h ps://www .iisd .o g /s o y /mapping -india -ene gy -policy -2022 -upda e
UN. (2021). NTPC Limi ed Ene gy Compac . Uni ed Na ions. h ps://www .un .o g /si es /un2 .un
.o g / iles /n pc _compac _p e iew _ e 2 .pd .
Viswana han, B., Raizada, S., Bassi, A., Pallaske, G., & Bea on, C. (2022). India’s S a e-Owned
Ene gy En e p ises, 2020–2050. In e na ional Ins i u e o Sus ainable De elopmen . h ps://
www .iisd .o g /publica ions / epo /india -s a e -owned -ene gy -en e p ises
Viswana han, B., Viswamohanan, A., Agga wal, P., Na aswamayany, D., Geddes, A., Suma no, T.
B., Schmid , M., Bea on, C., Goel, S., Du , A., & Ganesan, K. (2021). Mapping India’s Ene gy
Subsidies 2021: Time o Renewed Suppo o Clean Ene gy (p. 94). In e na ional Ins i u e
o Sus ainable De elopmen . h ps://www .iisd .o g /sys em / iles /2021 -07 /mapping -india -ene gy
-subsidies -2021 .pd
232 Saa hak Khu ana e al.
Appendix 13A
Economics o Coal-Fi ed Powe Plan s
Abhishek Raj
The capaci y u ilisa ion o India’s coal- i ed powe plan s (called coal plan s hence-
o h) has declined o e he las decade due o excess capaci y, lowe - han-expec ed
g ow h in demand, and apidly inc easing sha e o enewables. The Cen al
Elec ici y Regula o y Commission p esc ibes a Plan Load Fac o (PLF) o 85%
o eco e y o capaci y cha ge, whe eas he a e age PLF o coal s a ions in India
was 58% in FY22 and has been below 80% since 2010, and con inuously declin-
ing (Minis y o Powe , 2023). Apa om excess gene a ion capaci y in he sys em,
enewables also ha e mus - un s a us. As a esul , high enewable ene gy gene a ion
pe iods necessi a e coal plan s backing down gene a ion. As India emba ks owa ds
i s 2030 a ge o 500GW o non- ossil capaci y, he PLF o new coal plan s is likely
o emain low. The d a Na ional Elec ici y Plan 2022–2027 es ima es a PLF o
55% in 2026–2027 ma ginally inc easing o 62% in FY 2031–2032, unde op i-
mis ic demand g ow h condi ions (CEA, 2023).
To de e mine he u u e elec ici y mix ha minimises he cos o gene a ion, i
is impo an o eplace he p ac ice o assuming an 85% PLF while es ima ing he
cos o elec ici y om new coal plan s wi h mo e ealis ic assump ions on u ilisa-
ion and condi ions o ope a ion. Low-capaci y u ilisa ion signi ican ly inc eases
he pe -uni cos o coal gene a ion. Pe -uni ixed cos o elec ici y inc eases as
capaci y cha ges a e paid o plan a ailabili y and no ac ual dispa ch. Va iable
cos s also inc ease due o lowe e iciency on accoun o inc eased s a ion hea
a e.
Wi h a u u e elec ici y mix domina ed by enewables, especially sola , coal
plan s will o en be o ced o ope a e a a echnical minimum du ing he day ime,
wi h signi ican lexibili y in ope a ion. Ope a ing in low-loading condi ions will
add o Ope a ion and Main enance (O&M) cos and will equi e in es men s o
e o i ing o mee lexibili y equi emen s.
I usually akes 5–7 yea s o a coal plan o comple e cons uc ion. Any new
coal plan cons uc ion s a ing in 2023 is unlikely o commence ope a ion be o e
2028–2030.
Table 13.3 depic s le elised cos o elec ici y (LCOE) o hypo he ical new coal
plan s a di e en load ac o s, based on capi al expendi u e equi emen s speci ied
in he Na ional Elec ici y Plan.
Table 13.3 Le elised cos o elec ici y o coal plan s
Pi head coal plan Yea o commencemen
(Rs./kwh) 2028 2029 2030
LCOE a 85% PLF 5.31 5.43 5.56
LCOE a 60% PLF 6.41 6.56 6.72
LCOE a 55% PLF 6.75 6.91 7.07
Fu u e-P oo ing India’s Coal PSUs 233
Scalable Renewable Ene gy (RE) Al e na i es o Coal Powe Plan s
Sola and wind ene gy ha e a lowe pe -uni cos o elec ici y when compa ed
o coal bu a e in i m sou ces, subjec o a iabili y. Ene gy s o age echnologies
sol e hese limi a ions and can se e as an e ec i e eplacemen o new coal
plan s being buil o mee demand peaks ha canno be me by RE. The p ice
o li hium-ion ba e ies has declined signi ican ly o e he las decade and is
expec ed o decline u he . Howe e , in 2022, ba e y p ices wen up due o he
ise in he p ice o aw ma e ials. This p ice ise is expec ed o be empo a y, bu
i has led o an inc eased ocus on de eloping al e na i e chemis ies o g id-
scale s o age, such as sodium-sulphu , sodium-ion, and liquid me al amongs
o he s.
In 2020, ReNew Powe won a bid pu ou by Sola Ene gy Co po a ion o India
o supply Round- he-Clock (RTC) powe a Rs 3.6/kWh le elised a i . The p o-
jec will supply powe a an 80% PLF wi h a minimum 70% mon hly u ilisa ion,
compa able o coal plan s. The 400MW RTC p ojec is likely o be supplied by
900MW o wind and 400MW o sola , supplemen ed by 100MWh o ba e y
s o age (Me com, 2022). The p ojec o e sizes he RE p ojec o supply he con-
ac ed amoun o RTC. O e sizing RE p ojec s wi hou s o age is also possible
bu he size o RTC supply will be smalle . O e sizing RE p ojec s o RTC supply
ha e limi a ions, as eliable al e na i es o selling excess gene a ion a e equi ed
o p ojec easibili y. In addi ion, he e ha e also been auc ions ha blend enewa-
bles wi h con en ional sou ces such as hyd o and he mal powe , wi h a minimum
gua an eed supply om enewables.
Renewable powe pai ed wi h signi ican s o age capaci y will soon be cos -com-
pe i i e wi h new coal, wi h s eep lea ning cu es being obse ed in enewable and
s o age cos s. Acco ding o he d a NEP, capi al expendi u e o 5 hou s o s o -
age (adjus ed upwa ds o dep h o discha ge) is expec ed o d op om 9.3 C /MW
in 2022 o 5.24 C /MW in 2030. Table 13.4 depic s he Le elised Cos o S o age
(s andalone, no pai ed wi h RE) es ima es as pe NEP assump ions.
The choice be ween coal and enewables o mee ing he peak load while mini-
mising he cos o gene a ion equi es mul iple conside a ions. The yea o capaci y
addi ion, size o addi ional capaci y equi ed, and demand in non-sola hou s ha e
implica ions on he choice o al e na i es. RTC auc ions wi h o e sized RE ha e
p o ed o be mo e economical han coal powe and can be used o mee some o
he inc emen al demand be o e la ge-scale ene gy s o age becomes iable. Howe e ,
Table 13.4 Le elised cos o s o age
S o age (5 hou s) Yea o commencemen
(Rs./kwh) 2028 2029 2030
LCOS 5.66 5.35 5.05
14
In oduc ion
In India, he mal powe plan s p oduce almos 60% o he o al CO2 emissions. The
majo i y o he he mal powe in India is gene a ed om non- enewable sou ces such as
coal, ligni e, diesel, and na u al gas. Coal- and ligni e-based he mal powe gene a ion
has been he backbone o powe gene a ion because o hei abundan supply. Coal-
based he mal powe plan s (TPPs) in India a e less e icien han he powe plan s in
o he de eloped coun ies. This is due o he quali y o uel used o powe gene a ion.
E en hough he Indian coal-based uel o TPPs has low calo i ic alue and high ash
con en in compa ison o ha o gas-based uels, i is highly unlikely o India o make
a shi o gas since accessibili y and a o dabili y a e key ac o s. The ca bon in ensi y o
he Indian powe sec o is highe han he global a e age. Along wi h ha , India’s coal-
based elec ici y gene a ion has ebounded s ongly by 13% in 2021 a e a decline o
3.7% in coal gene a ion in 2020 (IEA, 2022).
Since he he mal powe sec o is e y impo an o he unc ioning o he coun y,
i is c ucial o analyse ene gy use (in)e iciencies ha exis in his sec o and o unde -
s and how o alle ia e hem. The 12 h i e-yea plan (2012–2017) has ecognised peak
elec ici y demand and de ici and has encou aged p i a e sec o in es men s o make he
coun y sel -su icien in e ms o elec ici y and o educe ene gy impo s. The e o e, o
achie e such ene gy su iciency and educe emissions i is c ucial o es ima e and unde -
s and he ene gy use e iciency le els o he TPPs loca ed ac oss se e al Indian s a es. I is
o signi ican in e es o unde s and he beha iou al dynamics o he powe sec o , which
can possibly answe impo an ques ions abou he coun y’s elec ici y needs and abou
how CO2 emissions can be educed in his sec o . Achie ing a highe ene gy use e iciency
o he powe plan s will no only educe emission o a la ge ex en and make hem sus-
ainable, i will also make hem compe i i e globally.
This s udy makes an a emp o es ima e ene gy use e iciency o he Indian he mal
powe plan s adop ing a Da a En elopmen Analysis amewo k. S a e-le el da a on elec-
ici y gene a ion and uel u ilisa ion is used o he pe iod 2018–2019 and 2019–2020.
The empi ical esul s show ha o he yea s 2018–2019 and 2019–2020, an o e all
inpu educ ion o 13% and 15%, espec i ely, is easible o gene a e elec ici y wi h he
gi en inpu s and echnology indica ing ha a signi ican amoun o emission educ ion is
possible jus by imp o ing he ene gy use e iciency o he powe plan s.
This chap e is o ganised as ollows. A b ie li e a u e e iew is p esen ed in “Li e a u e
Re iew.” An o e iew o he he mal and enewable ene gy sec o s is p esen ed in
The mal Powe and Renewable Ene gy Sec o s. The da a and me hodology used a e
14
E alua ion o Ene gy and En i onmen al
E iciency o he Indian The mal Powe Plan s
A S a e-Le el Analysis
Sabuj Kuma Mandal
This chap e has been made a ailable unde a CC-BY-NC-ND license.
DOI: 10.4324/9781003433088-18
10.4324/9781003433088-18

E alua ion o Ene gy and En i onmen al E iciency 241
E alua ion o Ene gy and En i on-
men al E iciency
discussed in Ene gy E iciency Es ima ion o he Indian TPPs. The esul s and discus-
sion o he analysis a e p esen ed in he la e pa o he sec ion. Conclusions along wi h
di ec ion o u u e esea ch a e p esen ed in he las sec ion.
Li e a u e Re iew
Some o he no able s udies ha ha e ocused on es ima ing he ene gy e iciency o he
he mal powe sec o include Chai e al. (2020). This s udy used a slacks-based measu e-
da a en elopmen analysis (SBM-DEA) o a ew lis ed companies in China o ind hei
echnical e iciency and hei ela ionship wi h he indus y. The esul s show ha he
sus ainabili y ac o o g een ene gy, e en hough commendable, lacks in e iciency, unlike
he he mal powe sec o whe e e iciency le els a e highe . In he Indian con ex , Singh
(1991) has ound echnical e iciencies in he he mal powe sec o and a emp ed o ind
he ela ionship be ween he plan size and i s echnical e iciency. The chap e inds a
posi i e ela ionship be ween a he mal powe plan ’s size and i s e iciency le el. A non-
pa ame ic DEA model used by Chi ka a (1999) o es ima e ope a ional ine iciencies
o Indian powe plan s highligh measu es equi ed o imp o e e iciencies o he powe
plan s. I includes imp o ing echnical knowledge, be e use o he p oduc ion inpu s,
and ini ia ing a pe o mance-based benchma k o ank he plan s ha a e doing be -
e . Shanmugam and Kulsh esh ha (2005) explo e he echnical e iciency le els o coal-
based TPPs in India, using he s ochas ic on ie p oduc ion unc ion me hodology o
he pe iod 1994–2002. They ound ha he e iciency alues a e widely di e en ac oss
di e en plan s and a e ime in a ian . Thaku e al. (2006) use he DEA me hod o 26
Indian s a e-owned ene gy u ili ies o ind compa a i e e iciency alues. They ound ha
se e al o hese uni s, especially la ge-sized uni s, a e no unc ioning a hei op imal le el
and sugges ed scaling he uni s down. Mukhe jee (2008) has es ima ed and compa ed he
ene gy e iciency alues o he Indian manu ac u ing sec o ac oss s a es and assessed he
impac o powe sec o e o ms on ene gy e iciency. Ghosh (2010) helps in iden i ying
powe plan s ha con ibu e mo e o he o e all emission using ne elec ici y gene a ion
and CO2 gene a ion o he yea s 2004–2008. By employing he (Cha nes, Coope and
Rhodes) CCR (Banke , Cha nes and Coope ) BCC models o DEA, Sh i as a a e al.
(2012) es ima ed he ela i e echnical e iciency alues o 60 coal-based he mal powe
plan s. The chap e discusses he e iciency le els o plan s based on hei p oduc ion size
and on he basis o hei owne ship. They also highligh ha he be e men o he mal
plan s by inc easing hei e iciency le els can inancially help he s a es o channel hei
capi al o build o imp o e capaci y. Bajpai and Singh (2014) employ he DEA app oach
and cons uc di e en models o ind he e iciency indices o 25 coal-based powe plan s
om a ious loca ions in India. The esul s iden i y powe plan s ha a e compa a i ely
e icien and gi e sugges ions abou imp o ing hei ope a ional and en i onmen al pe -
o mances. Sahoo e al. (2018) ound he e ec s o no malisa ion on ene gy e iciencies as
a esul o he PAT scheme using DEA along wi h c oss-sec ional analysis. He e hey ound
ha coal quali y and uel mix we e esponsible o he a iabili y in ene gy e iciency.
The mal Powe and Renewable Ene gy Sec o s
S a e-Wise O e iew
The o al All India Ins alled Elec ici y Gene a ing Capaci y as on 31 Ma ch 2021 is
382151.22 MW comp ising o he mal 234728.22 MW, Hyd o 46209.22 MW, Nuclea
242 Sabuj Kuma Mandal
6780.00 MW, and 94433.79 MW om enewable ene gy sou ces (CEA, 2021). A ound
61% o he o al elec ici y comes om he he mal powe sec o . A e age Plan Load
Fac o (PLF), a measu e o a powe plan ’s capaci y u ilisa ion, o he mal powe plan s
is 54.51%, which indica es sub-op imal use o ene gy gene a ing esou ces. A plan wi h
a highe PLF will inc ease he o al ou pu p oduced and educe he cos pe uni o elec-
ici y gene a ed.
Table 14.1 depic s a sec o -le el dis ibu ion o TPPs ac oss s a es. We obse e ha
mos (61%) TPPs a e si ua ed in he Wes ollowed by he Sou h. Guja a , Chha isga h,
and Maha ash a ha e he highes numbe (26 plan s each) o TPPs ollowed by Tamil
Nadu and Andh a P adesh. While he Wes and Sou h oge he accoun s o 43.63%
o he o al popula ion wi h a o al ins alled capaci y o 62.42%, he No h and Eas
combined accoun s o 53.18% o popula ion wi h a o al ins alled capaci y o 36.49%.
Table 14.1 The mal powe plan s dis ibu ed ac oss s a es
No. o s a ions
Region S a e To al S a e Cen e P i a e Ins alled
capaci y(MW)
Popula ion
(million)
Eas Wes Bengal 19 9 4 6 14277 98.125
Biha 6 0 6 0 7050 123.083
Jha khand 8 1 4 3 4460 38.471
O issa 9 1 4 4 9800 44.033
To al 42 11 18 13 35587 303.712
No h Ha yana 6 3 2 1 5761.59 29.483
U a P adesh 21 4 8 9 25222.14 230.907
Delhi 4 3 0 1 2208.4 20.571
Punjab 5 2 0 3 5680 30.339
Jammu &Kashmi 1 1 0 0 175 13.408
Rajas han 9 7 0 2 10843.13 79.281
To al 46 20 10 16 49890.26 403.989
Wes Madhya P adesh 11 4 0 7 21950 84.516
Guja a 26 12 2 12 23643.41 69.788
Maha ash a 26 8 2 16 28173.08 124.437
Chha isga h 26 3 4 19 23688 29.493
Goa 1 0 0 1 48 1.559
To al 90 27 8 55 97502.49 309.793
Sou h Tamil Nadu 24 9 6 9 14398.881 76.402
Andh a P adesh 23 4 1 18 16525.344 52.787
Telangana 7 6 1 0 7572.5 37.725
Ka na aka 9 4 1 4 9505.2 66.845
Ke ala 4 2 1 1 693.54 35.489
Pondiche y 1 1 0 0 32.5 1.571
To al 68 26 10 32 48727.965 270.819
No h Eas Assam 7 3 2 2 1394.855 35.043
T ipu a 5 2 3 0 1099.6 4.071
Manipu 1 1 0 0 36 3.165
To al 13 6 5 2 2530.455 42.279
Na ional
o al 259 90 51 118 234238.17 1330.592
Sou ce: Compiled by he au ho s.
E alua ion o Ene gy and En i onmen al E iciency 243
This means ha he demand o elec ici y is highe o he no he n and eas e n egions.
The No h and Eas ha e a highe numbe o cen al go e nmen s based TPPs, while he
Sou h and Wes has mo e S a e and P i a e sec o TPPs. The No h Eas egion has 5%
o he o al TPPs o a dis ibu ed popula ion o 3.17% ha ing a o al capaci y o 1%.
Speci ic emission is a measu e wi h which he pe o mance o a he mal powe plan
is assessed. The egion-wise speci ic emission da a show ha he TPPs in he No h and
Sou h ( ollowed by he Wes ) egions a e ope a ing wi h lowe emission a es han plan s
in he Eas and he No h Eas . These highe emission a es could be due o he age o
hese plan s o he usage o low-e iciency sys ems.
CO2 and Ene gy In ensi y in Elec ici y Gene a ion
The CO2 in ensi y o elec ici y gene a ion is he amoun o CO2 emi ed when p oduc-
ing one uni o elec ici y (kg CO2/kWh). The in ensi y alues can be used o compa e
s a e pe o mances, and sugges a eas o ocus o educe CO2 emissions. Ene gy in ensi y
calcula es he amoun o ene gy equi ed o p oduce one uni o ou pu i.e., elec ici y.
While a low ene gy in ensi y alue should be associa ed wi h lowe emission in ensi y, i
depends on he quali y o he uel and he e iciency o u ilisa ion. The adi ional meas-
u e o ene gy e iciency is he in e se o ene gy in ensi y. In his s udy, we i s es ima e
and compa e CO2 and ene gy in ensi y alues ac oss s a es and ind he ela ionship
be ween hem. We also check i s a es wi h a highe pe cen age o enewable ene gy ha e
lowe CO2 in ensi ies in compa ison o s a es using ossil uels in TPPs.
We use Indian s a e-le el da a o 20 s a es ha use bo h he mal and enewable
sou ces o ene gy (see Table 14.2). The selec ion o he mal powe s a es is based on
he amoun o elec ici y p oduced and he ype o ossil uels used. In addi ion, he e
a e s a es ha ha e hei own sha e o elec ici y p oduced based on enewable ene gy
sou ces (RES) i.e., s a es ha ha e bo h he mal and enewable ene gy-based powe . The
main da a sou ces used he e a e he CEA’s Gene al Re iew epo s and CO2 da a ( aken
om he CEA’s CO2 baseline da abase) o he yea s 2018–2019 and 2019–2020.
The CO2 emission in ensi y o a s a e is calcula ed as he a io o absolu e CO2 emis-
sions (kgCO2) o he s a e and i s g oss elec ici y p oduc ion (kWh). The CO2 in ensi y
he e does no only accoun o coal and ligni e usage bu also o o he o ms like gas
and diesel oil. Ene gy in ensi y is he a io o he o al ene gy used in B i ish The mal
Uni (BTU) and he amoun o elec ici y p oduced (kWh) by each o he s a es. The ossil
uel alues a e all con e ed in BTU uni s.
Ac oss 20 s a es, he a e age alue o he yea 2018–2019 and 2019–2020 is 1.57 and
1.50, espec i ely. S a es wi h CO2 in ensi y alues highe han he a e age o bo h yea s
a e U a P adesh, Chha isga h, Madhya P adesh, Tamil Nadu, Jha khand, Odisha,
Wes Bengal, Assam, and T ipu a. Assam and T ipu a seem o emi much highe le els o
CO2 as compa ed o he amoun o elec ici y hey p oduce. U a akhand and Delhi emi
compa a i ely lowe amoun s o CO2 du ing he elec ici y p oduc ion p ocess.
The a e age ene gy in ensi y alue is 59772.43 o 2018–2019 and 67025.52 o
2019–2020. Tha is, o 2018–2019, a ound 59772.43 BTU o ene gy is used on a e -
age by 20 s a es o de i e one KWh o elec ici y. Ene gy is es ima ed om se e al
ypes o uels including coal/ligni e, u nace oil, ligh diesel, LSHS/HHS, gas, HSD, and
nap ha. Ka na aka has he highes ene gy consuming coal-based powe plan s ha use
highe amoun s o gas o elec ici y gene a ion, hence ha ing highe ene gy in ensi y
alues o bo h yea s. All he o he s a es ha e alues ha a e signi ican ly lowe han
244 Sabuj Kuma Mandal
Table 14.2 S a e-wise CO2 in ensi y and ene gy in ensi y es ima ion
2018-19 2019-20
S a es egion CO2
in ensi y
CO2
in ensi y
anks
Ene gy
in ensi y
Ene gy
in ensi y
anks
RES % TPP % CO2
in ensi y
CO2
in ensi y
anks
Ene gy
in ensi y
Ene gy
in ensi y-
anks
RES % TPP %
Delhi 0.4359 19 5492.26 I8 3.1923 96.8077 0.2734 20 5219.426 19 4.5044 95.4956
Ha yana 0.9413 15 9726. I8 15 2.6404 97.3596 0.7821 16 8831.16 16 3.5582 96.4418
Punjab 0.5854 17 9447.85 16 6.5279 93.4721 0.5774 17 8531.11 17 8.4674 91.5326
Raj a= han 0.8615 16 11194.79 14 17.7739 82.2261 0.8703 15 11532 15 21.1048 78.8952
U a P adesh 1.702 8 12309.14 12 8.2774 91.7226 1.7164 8 12341.53 14 7.5526 92.4474
U a akhand 0.2466 20 4615.37 19 34.735 65.265 0.2832 19 5480.427 I8 29.7427 70.2573
Chha isga h 1.5948 9 13949.87 6 1.375 98.625 1.5516 9 13967.74 5 1.5543 98.4457
Guja a 1.0277 13 13424.43 8 15.2751 84.7249 0.9653 13 12906.65 13 17.2306 82.7694
Madhya P adesh 1.809 7 17273.51 2 11.2635 88.7365 1.8276 5 18003.23 2 12.2305 87.7695
Maha ash a 0.9709 14 13102.01 11 12.1357 87.8643 0.9567 14 13493.18 9 11.7315 88.2685
Andh a P adesh 1.0915 12 13181.13 10 22.5897 77.4103 1.0629 12 13636.69 8 21.622 78.378
Telangana 1.4659 10 9205.02 17 19.1578 80.8422 1.3915 10 13343.77 11 18.3238 81.6762
Ka na aka 1.1295 11 971148.89 1 48.73 51.27 1.0651 11 1114231 1 57.1483 42.8517
Ke ala 0.4921 18 3807.57 20 99.4458 0.5542 0.5227 I8 3306.701 20 98.4293 1.5707
Tamil Nadu 1.8134 6 12024.7 13 29.857 70.143 1.7953 6 13679.83 7 34.6853 65.3147
Jha khand 1.9277 5 13389.73 9 0.1567 99.8433 1.792 7 13421.7 10 0.1706 99.8294
Odisha 2.3918 3 15644.25 5 4.0381 95.9619 2.0413 3 15606.14 4 4.0003 95.9997
Wes Bengal 1.9396 4 13736.93 7 3.971 96.029 1.9729 4 13764.52 6 4.1691 95.8309
Assam 3.997 2 15966.7 4 1.9059 98.0941 4.9122 1 12929.14 12 1.8002 98.1998
T ipu a 4.9044 1 16808.22 3 6.8163 93.1837 3.7168 2 16284.73 3 3.6555 96.3445
S a e a e age 1.5664 59772.43 17.4932 82.5068 1.5038 67025.52 18.0841 81.9159
Sou ce: Da a aken om CEA and compu ed by he au ho .
No e: CO2 in ensi y is he a io o absolu e emission and g oss elec ici y p oduc ion; ene gy in ensi y is he a io o o al ene gy used and o al elec ici y p oduced.
E alua ion o Ene gy and En i onmen al E iciency 245
he a e age. Apa om Ka na aka, s a es like Chha isga h, Madhya P adesh, Odisha,
Assam, and T ipu a ha e highe ene gy in ensi ies. Figu e 14.1 shows he sha e o coal
p oduc ion by Indian s a es. By compa ing his pe cen age wi h he in ensi y alues we
es ima ed in he able, we can see ha almos all he s a es wi h highe coal p oduc ion
sha es ha e highe le els o CO2 and ene gy in ensi ies. Chha isga h has he la ges
amoun o aw coal ollowed by Odisha and hey ank 3 d and 9 h, espec i ely, wi h
espec o hei CO2 in ensi ies. Thei ene gy in ensi ies a e also highe in compa ison
o o he s a es.
We obse e ha Ka na aka has he highes ene gy in ensi y among all he s a es o
bo h ime pe iods and Ke ala, which almos ully uses RES o powe gene a ion, has
he lowes ene gy in ensi y. Fo bo h ime pe iods, when we look a in ensi ies we ind
ha lowe ene gy in ensi ies need no ha e o lead o lowe CO2 in ensi ies. TPPs in
Ka na aka ha e used highe amoun s o ene gy bu ha e only emi ed 1.12 onnes o CO2
o he gene a ion o 1 MWh ( o 2018–2019) o elec ici y, while Telangana has used
lowe ene gy le els o emi mo e CO2 du ing powe gene a ion. S a es like Tamil Nadu,
U a P adesh, and Jha khand ha e compa a i ely lowe ene gy in ensi ies wi h highe
CO2 in ensi ies. On he o he hand, Assam and T ipu a ha e highe le els o ene gy and
CO2 in ensi ies i.e., hey use highe le els o ene gy and also emi inc eased le els o CO2.
In he able, we y o compa e he CO2 in ensi y and ene gy in ensi y ankings among
he s a es. E en hough Ka na aka (in bo h ime pe iods) anks 11 h in CO2 in ensi y, i
ops i s in he ene gy in ensi y ankings. This could be due o he high calo i ic alue o
he uel used o elec ici y gene a ion. Ka na aka, ollowed by Maha ash a, use signi i-
can ly highe le els o gas, which has high calo i ic alue, as compa ed o o he Indian
% SHARE OF COAL PRODUCTION IN 2020-21
ASSAM
CHHATTISGARH
JAMMU & KASHMIR
JHARKHAND
MADHYA PRADESH
MAHARASTRA
ODISHA
TELANGANA
UTTAR PRADESH
WEST BENGAL
Figu e 14.1 Sha e o aw coal p oduc ion among Indian s a es.
Sou ce: P o isional Coal S a is ics, 2020–2021 epo .

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