Coal India to Invest ₹25,000 Crore in Massive Renewable Energy Expansion

In a significant move showcasing India's energy transition, Coal India Limited (CIL) has announced plans to invest approximately ₹25,000 crore to develop renewable energy capacity that will supply power to green ammonia facilities. This strategic pivot represents one of the largest renewable energy contracts worldwide and highlights the state-run mining giant's diversification strategy amid evolving energy landscapes.

Landmark Renewable Energy Partnership

On May 7, Coal India signed a memorandum of understanding (MoU) with AM Green to supply 4,500MW of renewable power to the latter's green ammonia production facilities. This non-binding agreement focuses on the long-term supply and sourcing of solar and wind energy, marking a watershed moment in India's green energy journey.

Under this arrangement, Coal India will develop substantial renewable capacity with the following breakdown:

• 2,500MW to 3,000MW of solar power capacity
• 1,500MW to 2,000MW of wind power capacity

The solar projects are expected to be established in sun-rich states such as Gujarat and Rajasthan, while potential wind project sites will be explored across southern Indian states to maximize generation efficiency.

Integration with Pumped Hydro Storage

To ensure reliable and consistent energy supply, AM Green will integrate the solar and wind power from Coal India with pumped hydro storage technology. This comprehensive approach addresses one of the primary challenges of renewable energy—intermittency—by providing stable green power to AM Green's ammonia production facilities.

P.M. Prasad, Chairman and Managing Director of Coal India Ltd, emphasized the strategic importance of this initiative: "While coal remains our mainstay in meeting India's expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future. This is in consonance with our commitment to become the country's integrated energy provider."

AM Green's Ambitious Green Hydrogen Goals

AM Green, which was established by the founders of Greenko Group, has set ambitious targets for green ammonia production. The company aims to produce 5 million tonnes per annum (mtpa) of green ammonia by 2030, equivalent to approximately 1 mtpa of green hydrogen.

This production target represents approximately 20% of India's overall green hydrogen production objectives under the National Green Hydrogen Mission, making AM Green a significant player in the country's clean energy transition.

Anil Chalamalasetty, founder of Hyderabad-based Greenko Group and AM Green, expressed enthusiasm about the partnership: "We are delighted to partner with CIL on one of the world's largest carbon-free, renewable energy supply contracts. We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world."

Expanding Green Energy Portfolio

AM Green was established as a comprehensive energy transition platform with a focus on producing various green energy products including sustainable aviation fuel, green ammonia, green hydrogen, green chemicals, and biofuels. The company also aims to establish technology partnerships and services through its various business verticals housed within its subsidiaries.

Beyond its partnership with Coal India, AM Green's minerals division, AMG Metals & Minerals (AMG M&M), has formed an alliance with global mining giant Rio Tinto. This collaboration aims to establish the world's largest renewable-powered aluminum facility in India, with an investment of approximately $6 billion.

Coal India's Strategic Diversification

This massive renewable energy investment reflects Coal India's broader strategy to diversify its operations and adapt to the changing energy landscape. Although coal production and consumption for power generation have increased in recent years to meet India's growing electricity demand, the company recognizes that new energy sources will play an increasingly important role in the long term.

Over the past few years, Coal India has taken significant steps to expand its portfolio beyond coal mining and venture into cleaner fuel alternatives. This latest renewable energy initiative represents one of the company's most substantial commitments to date toward sustainable energy production.

The partnership between Coal India and AM Green exemplifies how traditional fossil fuel companies can evolve and contribute meaningfully to the renewable energy transition, ultimately supporting India's climate goals while maintaining energy security.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

Read More

Swiggy Q4 Results: Losses Double to Rs 1,081 Crore Despite 45% Revenue Growth

Food delivery giant Swiggy has reported a significant widening of losses in the fourth quarter of fiscal year 2025, even as it posted strong revenue growth. The company's losses nearly doubled to Rs 1,081 crore compared to Rs 554 crore in the same period last year, while revenue from operations surged 45% year-on-year to Rs 4,410 crore.

Growing Losses Amid Aggressive Expansion

The substantial increase in losses can be primarily attributed to Swiggy's aggressive investment strategy in its quick commerce delivery business, Instamart. As competition intensifies from rivals like Blinkit and Zepto in the rapidly evolving quick commerce space, Swiggy has ramped up spending on customer acquisition, dark store expansion, and marketing initiatives to defend its market position.

Despite these mounting losses, the company's overall business volume showed impressive growth. The gross order value (GOV) surged 40% year-on-year to reach Rs 12,888 crore in Q4FY25, reflecting strong performance across its various business verticals.

However, the consolidated adjusted EBITDA loss widened to Rs 732 crore, largely due to the significant investments being channeled into the Instamart business as part of its expansion strategy.

Food Delivery Business Shows Improvement

Swiggy's core food delivery segment demonstrated healthy growth with a 17.6% year-on-year increase in gross order value, reaching Rs 7,347 crore. More importantly, the adjusted EBITDA margins for this segment showed marked improvement, climbing to 2.9% of GOV compared to just 0.5% a year ago.

This growth has been supported by several innovative offerings, including:

• Premium subscription program One BLCK
• Faster deliveries through the Bolt service

The Bolt service has gained significant traction and now powers approximately 12% of all food delivery orders on the platform, highlighting customers' preference for speed and convenience.

Instamart: Growth at a Cost

The quick-commerce business operating under the Instamart brand continued its rapid expansion trajectory, with GOV growing an impressive 101% year-on-year to Rs 4,670 crore. During this period, Swiggy added 316 new dark stores, which exceeds the cumulative dark stores added over the previous eight quarters combined.

The service has now expanded its footprint to 124 cities across India, demonstrating Swiggy's commitment to capturing the quick commerce market. However, this aggressive expansion has come at a cost. Instamart's contribution margin declined to -5.6%, compared to -4.6% in the previous quarter, as the company invested heavily in customer acquisition and network expansion.

The adjusted EBITDA loss for Instamart rose to Rs 840 crore, driven by higher operating costs associated with new stores and market expansion initiatives.

Out-of-Home Consumption Turns Profitable

In a positive development, Swiggy's out-of-home consumption segment achieved profitability, recording a 42% year-on-year growth in GOV and achieving an adjusted EBITDA margin of 0.3% of GOV. This marks an important milestone in the company's journey toward overall profitability.

User Growth and Engagement

On the user front, the platform's average monthly transacting users (MTUs) grew 35% year-on-year to reach 19.8 million. Significantly, about 35% of these users utilize more than one service on the Swiggy platform, indicating strong cross-selling success. This multi-service usage has been identified as a key driver of customer retention and growth.

"FY25 was a year of many firsts for Swiggy, with the launch of new services like Instamart, Snacc, and Pyng," said MD & Group CEO Sriharsha Majety.

Future Outlook

Moving forward, Swiggy has indicated that its focus will remain on scaling Instamart, expanding its out-of-home consumption business, and improving efficiencies in the food delivery segment. These areas are expected to be the key growth drivers in the coming quarters.

However, managing the substantial losses in the quick-commerce segment will be a critical challenge that investors and analysts will be closely monitoring. The company's ability to balance aggressive growth with financial sustainability will likely determine its long-term success in the highly competitive food delivery and quick commerce landscape.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

Read More