Ministry of Coal Drives Large-Scale Diversification for Sustainability; NLCIL and CIL Forge Ahead with Mega Power Projects

TFP Bureau, New Delhi, August 07, 2023: In a strategic move towards securing the future of India’s coal sector, the Ministry of Coal is actively steering large-scale diversification endeavors among Central Public Sector Enterprises (CPSEs). A prime example of this progressive approach is the National Thermal Power Corporation (NLCIL), poised to establish two formidable thermal power plants, setting a transformative course for India’s energy landscape.

Ghatampur Thermal Power Plant: A Gateway to Reliable Power Supply

Situated near Kanpur, the Ghatampur Thermal Power Plant is on the verge of becoming a power hub of significance. A collaborative venture between NLCIL and the Government of Uttar Pradesh, the plant is a testament to joint endeavors for sustainability. Set to generate an impressive 3 x 660 MW power output at a cost of Rs. 19,406 crores, this endeavor will offer a substantial power supply of 1478.28 MW to Uttar Pradesh and 492.72 MW to Assam. Currently in the implementation phase, the first phase is slated to commence power generation by year-end.

Talabira, Odisha Plant: Energizing Southern States

Further exemplifying NLCIL’s commitment to diverse energy provisioning, plans are underway for a remarkable 3 x 800 MW pithead thermal power plant at Talabira, Odisha. Pioneering the expansion of energy reach, this initiative, estimated at Rs. 19,422 crores, will channel 1450 MW power to Tamil Nadu, 100 MW to Puducherry, and 400 MW to Kerala. Scheduled to commence by year-end and concluding by 2028-29, this visionary project signifies NLCIL’s profound influence on India’s power landscape.

Coal India Ltd’s Dual Power Endeavors

Coal India Ltd (CIL), a pivotal player in the coal sector, is charting its course toward energy diversification. The journey unfolds with two thermal power plants, one near Amarkantak in collaboration with the Madhya Pradesh Government. With a planned capacity of 1×660 MW, the project’s estimated cost stands at Rs. 5,600 crores. In an advanced stage of approval, this partnership between SECL (a subsidiary of CIL) and Madhya Pradesh Power Generating Company Ltd aims to commence work by year-end, targeting completion by 2028. Notably, the project secures necessary land arrangements.

Mahanadi Coal Fields Ltd (MCL), another subsidiary of CIL, ushers in the future with the creation of Mahanadi Basin Power Limited. A wholly-owned subsidiary, MCL is set to establish a 2×800 MW thermal power plant near Basundhara Mines. Envisioned at an approximate cost of Rs. 15,947 crores, this ambitious venture has garnered significant interest, accumulating Power Purchase Agreements (PPAs) for a staggering 4000 MW. Work initiation is projected for mid-next year, eyeing completion by 2028.

Pithead Power Plants: A Sustainable Powerhouse

In line with forward-thinking energy paradigms, the Ministry of Coal champions the establishment of pithead thermal power plants, redefining the trajectory of power generation. These plants, characterized by an estimated fixed cost of Rs. 2.5 and variable cost of about Rs. 1.25 per unit, promise to generate power at less than Rs. 4 per unit. This strategic decision aligns with the anticipated coal surplus, ensuring long-term operational viability for both CIL and NLCIL.

Furthermore, the Ministry of Power’s policies underscore the creation of requisite renewable energy capacity alongside thermal power plants. This visionary approach propels power generation with a fusion of thermal and solar energy, effectively catering to a cost-efficient and sustainable power supply for end users.