New Delhi: In a significant move aimed at bolstering India’s power generation capabilities, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has given the green light to equity investments by key coal mining entities for the establishment of two major thermal power plants. The approved projects include a 1×660 MW Thermal Power Plant in Madhya Pradesh and a 2×800 MW Thermal Power Plant in Odisha.
The key highlights of the CCEA’s approval are as follows:
(a) 1×660 MW Thermal Power Plant in Madhya Pradesh:
- Investing Entity: South Eastern Coalfields Limited (SECL)
- Equity Capital: Rs. 823 Crore (± 20%)
- Debt-Equity Ratio: 70:30
- Project Capex: Estimated at Rs. 5,600 Crore (± 20%)
- Location: Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh
- Partnership: Joint Venture (JV) of SECL and Madhya Pradesh Power Generating Co Ltd (MPPGCL)
(b) 2×800 MW Thermal Power Plant in Odisha:
- Investing Entity: Mahanadi Coalfields Limited (MCL)
- Equity Capital: Rs. 4,784 Crore (± 20%)
- Project Capex: Estimated at Rs. 15,947 Crore (± 20%)
- Location: Sundergarh District, Odisha
- Project Implementation: Through Mahanadi Basin Power Ltd (MBPL), a subsidiary of MCL
(c) Approval to Mahanadi Basin Power Ltd (MBPL):
- Approval for MBPL, a Special Purpose Vehicle (SPV) of MCL, to establish the 2×800 MW Super-Critical Thermal Power Plant.
(d) Equity Investment by Coal India Limited (CIL):
- CIL’s equity investment beyond 30% of its net worth in the JV of SECL-MPPGCL and MBPL.
The move aligns with Coal India Limited’s objective to contribute significantly to the power sector, providing affordable and sustainable energy solutions for the country. These thermal power plants, equipped with supercritical technology, are expected to play a crucial role in meeting India’s growing energy demands.
Coal India Limited, being the world’s largest coal mining company, is strategically investing in these pithead thermal power plants to ensure a reliable and cost-effective power supply for the nation. The projects are anticipated to contribute substantially to India’s power generation landscape and further strengthen its energy security.