The Cabinet’s panel on economic affairs on Thursday approved equity investment of Rs 5,607 crore by Coal India Ltd subsidiaries in two thermal power projects — one each in Madhya Pradesh and Odisha — with a combined capacity of 2,260 megawatt to be built at an investment of Rs 21,547 crore capital expenditure.
The investment clearance underlines the government’s resolve to expand coal-fired generation capacity for meeting rising electricity demand and confidence of meeting additional fuel requirement from domestic coal mines.
Power minister R K Singh had in November said India needs to add about 30 GW (gigawatts) thermal generation capacity on top of 50 GW projects in various stages of implementation for meeting future demand. Coal minister Pralhad Joshi backed this up by telling TOI recently India will stop importing coal — barring some coking coal — from 2025.
According to the approved investments, MCL (Mahanadi Coalfields Ltd) is to pump Rs 4,784 crore into its subsidiary MBPL (Mahanadi Basin Power Ltd) for building a 1,600 MW project in Odisha’s Sundargarh district. The project will involve building two 800 MW units at an investment of Rs 15,947 crore.
SECL will invest Rs 823 crore for building a 660 MW unit through a joint venture with Madhya Pradesh generation utility, MPPGCL, at Amarkantak thermal power station at Chachai village of Anuppur District in the state at a cost of Rs 5,600 crore.
The move shows India has enough money to fund coal-based generation capacity in spite of major global lenders turning their back on fossil fuel projects.
