Thar coal may become uncompetitive if high cost trends continue


Thar coal may become uncompetitive if high cost trends continue

It is a matter of great pleasure that the Thar coal project has reached a critical stage by hitting the coal surface and the reported quality appears to be up to the mark. At this happy moment, however, several issues have emerged that need to be examined.

Thar coal costs around twice that of international and regional prices, including in India’s Thar desert area, for lignite under more or less identical conditions. Similarly, Thar coal-based electricity is more than 50% pricey than lignite-based electricity elsewhere.

People had thought that Thar coal would address their difficulties and make cheaper electricity available, but they were disappointed as were in the case of hydroelectric power.

Most still believe that hydroelectric power is the cheapest energy source, when actually it is the most expensive, forgetting the case of Neelum-Jhelum power plant. Read More

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