【Global Times reporter Su Yanqi】According to a report by Reuters on September 30, citing industry and government sources, private coal power producers in India have urged the Indian government to relax restrictions on Chinese coal power equipment, allowing the import of related equipment from China. They said that India currently lacks domestic coal power equipment resources and the cost is high.
A coal-fired power plant in Ahmedabad, India - photo provided by foreign media
The report introduced that in 2021, the Indian power sector forced coal power producers to use domestic equipment under its "Make in India" initiative to promote the development of local manufacturing. In addition, the report mentioned that this plan was introduced when Sino-Indian diplomatic relations were relatively tense.
Reuters stated that according to a letter seen by the media, the "India Power Producers Association (hereinafter referred to as 'the association')", representing private coal power producers in India, wrote to the Central Electricity Authority of India on June 3, seeking exemptions from the "Make in India" mandatory requirements. The association stated that relaxing the restrictions would help complete stalled projects and expand existing facilities to further support Indian coal power equipment manufacturers.
The report said that although the association did not directly mention China in the letter, sources said that purchasing coal power equipment from China is the only option for Indian companies.
The report stated that the Indian power sector has not responded to requests for comment. However, sources said that the Indian government is considering the association's request.
Reuters mentioned that India has stated that it plans to increase coal power capacity by 97 gigawatts by 2035. Sources said that about 48 to 50 gigawatts of the current coal power capacity in India are using Chinese equipment because these power plants were built before 2021.
It is understood that India has the fifth largest coal reserves in the world, and the government states that coal fuel "remains crucial." Although Indian corporate groups have made significant investments in solar and wind farms, India still relies on coal to provide 74% of its electricity. While many countries around the world are seeking carbon reduction transformation, India's coal giant, the Coal India Limited, plans to reopen more than 30 mines this year and will also develop five new mines. According to a report by the Financial Times on June 8, the company stated that the country's renewable energy industry is still unable to meet the growing energy demand.
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