In a significant move towards bolstering the country’s power generation capabilities, the Cabinet Committee on Economic Affairs, under the leadership of Prime Minister Narendra Modi, has given the green light to equity investments by South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL). The approvals pertain to the establishment of thermal power plants, aiming to meet the growing energy demands of the nation.
SECL has secured approval for an equity capital of ₹823 Crore (± 20%) to establish a 1×660 MW Supercritical Thermal Power Plant. The project will be set up through a joint venture (JV) between SECL and Madhya Pradesh Power Generating Co Ltd (MPPGCL) at the Amarkantak Thermal Power Station in the Chachai village of Anuppur District, Madhya Pradesh. The estimated project capital expenditure is ₹5,600 Crore (± 20%), with a debt-equity ratio of 70:30. The move aligns with the broader vision to enhance power infrastructure and accessibility in the region.
Simultaneously, MCL has received approval for an equity capital of ₹4,784 Crore (± 20%) for the establishment of a 2×800 MW Supercritical Thermal Power Plant in Sundergarh District, Odisha. The project, estimated to incur a capital expenditure of ₹15,947 Crore (± 20%), will be implemented through Mahanadi Basin Power Ltd (MBPL), a wholly-owned subsidiary of MCL. The Cabinet Committee on Economic Affairs has also granted approval to MBPL to set up the 2×800 MW Super-Critical Thermal Power Plant.
Additionally, Coal India Limited (CIL), recognized as the largest coal mining company globally, is set to contribute significantly to the nation’s power generation landscape. CIL will engage in the establishment of two pithead thermal power plants through its subsidiaries, with the aim of delivering cost-effective power to the country.
The first venture involves a 1×660 MW Supercritical Coal-Based Thermal Power Plant at the Amarkantak Thermal Power Station in the Chachai village of Anuppur District, Madhya Pradesh. This project will materialize through a joint venture between SECL and MPPGCL.
The second initiative entails the creation of a 2×800 MW Supercritical Thermal Power Plant in Sundergarh District, Odisha. This endeavor will be executed through ‘Mahanadi Basin Power Ltd’ (MBPL), a wholly-owned subsidiary of MCL.
To facilitate these ventures, the Cabinet Committee on Economic Affairs has granted approval for equity investments by CIL beyond 30% of its net worth. This amounts to ₹823 Crore (± 20%) for the JV of SECL-MPPGCL and ₹4,784 Crore (± 20%) for MBPL, a 100% wholly-owned subsidiary of MCL.
