Private interest in developing new coal-fired power generation capacity has revived following a five-year hiatus, according to a report by Reuters citing four sources familiar with the matter.

Between 2013-2018, private investment contributed 56 GW of installed coal-fired capacity, representing over 60% of the total added in the country. In comparison, between 2019 and 2024, the figure was just 1.5 GW representing 5% of the total added. Now, private companies including Adani Power, JSW Group and Essar Power, have expressed interest in building an additional 10 GW of capacity, either through expanding existing plants or by taking over stalled projects that are facing financial difficulties, of which there is around 23 GW capacity in the country.

The move would fit with the Indian government’s plan to increase coal-fired capacity by 80 GW by 2032. As usual, it is economics driving the renewed interest in coal, with emergency laws allowing higher tariffs and heavy power demand making investment in coal-firing more attractive.