16 July 2008 - The public sector company Coal India Limited (CIL) is moving into the power generation field and has signed three Memorandum's of Understanding with electricity boards in the states of Uttar Pradesh, Chhatisgarh and Tamil Nadu to set up 1000 MW capacity plants.

However, the implementation of the power projects would only be taken up after three years because the CIL has resolved to concentrate on increasing coal production, the company's chairman, Partho S Bhattacharya told the Times of India.

Bhattacharya said CIL's subsidiaries Southern Eastern Coal Fields Limited, Northern Coal Fields Limited, and Mahanadi Coalfields Limited have entered into agreements with the Uttar Pradesh Vidut Nigam, Chhattisgarh state electricity board and Nevelli Lignite Power Corporation.

Coalfields would be developed for exclusive use of coal for the new power plants, and the cost of power generation from these power plants would be cheaper because the power plants are expected to be located near the coal fields.