Coal India is planning to set up a new power plant by 2015 or 2016, near one of its mines, from which coal cannot be shipped and sold, due to a lack of rail connections.
The power plant, with 1.6 GW capacity, will be set up near a mine that produces 20 million tpa in the eastern state of Orissa. The company is seeking a joint venture partner to set up the plant.
Coal India has already received some clearances and more are likely to be sanctioned soon.
According to the company, insufficient connectivity is one of the reasons it has lagged behind output targets -- leading to crippling outages and shortages at power producers.