What is the significance of the CCEA approving ₹5,607 crore equity investments by Coal India arms in two thermal power projects

The approval by the Cabinet Committee on Economic Affairs (CCEA) for Coal India arms to make equity investments of ₹5,607 crore in two thermal power projects holds several significant implications: 1. Enhanced coal off-take: Coal India's equity investments will ensure a guaranteed market for its coal production, as it can allocate a portion of the output to power projects in which it has equity stakes. 2. Diversification of revenue streams: This move allows Coal India to expand beyond its core business of coal mining and enter the power sector, diversifying its revenue streams and reducing dependence on coal sales alone. 3. Boost to power generation capacity: Equity participation by Coal India will enhance power generation capacity in the country through the establishment of new thermal power projects. 4. Energy security: These investments will contribute to India's energy security by increasing the availability of thermal power, which is currently a crucial component of the country's energy mix. 5. Synergy between coal and power sectors: The integration of coal mining and power generation sectors will result in better coordination, efficiency, and cost optimization. Overall, the CCEA's approval signifies the government's support for Coal India's strategic investments in thermal power projects, promoting economic growth, energy security, and diversification of revenue for the company.