In a significant move towards diversifying the coal sector, the Ministry of Coal has been encouraging coal subsidiaries to venture into large-scale diversification projects. As part of this initiative, NLC India Limited (NLCIL) has unveiled plans to establish two state-of-the-art thermal power plants, aimed at bolstering power generation in various states.
The first project, the Ghatampur Thermal Power Plant near Kanpur, is a joint venture between NLCIL and the Government of Uttar Pradesh. With a colossal power generation capacity of three times 660 MW, this ambitious plant comes with an estimated cost of ₹19,406 crore. The project is already in its implementation phase, and the first phase is expected to commence operations by the end of this year. The plant will cater to the power needs of Uttar Pradesh with 1,478.28 MW and also supply 492.72 MW to the state of Assam.
Furthermore, NLCIL is actively pursuing another venture in the form of a 3×800 MW thermal power plant at Talabira in Odisha. Situated near the Talabira coal mines, this pithead thermal power plant is being developed at an estimated cost of ₹19,422 crore. The project is currently in the advanced stages of acquiring land and obtaining necessary clearances, with tendering about to reach its final phase. The commencement of work on this project is expected by the end of this year. Once completed, the plant will provide 1,450 MW to Tamil Nadu, 100 MW to Pondicherry, and 400 MW to Kerala. The project is slated to achieve completion by the year 2028-29.
Additionally, Coal India Limited (CIL), a prominent coal subsidiary, is also investing in the establishment of two thermal power plants to harness the surplus coal resources. The first project, a joint venture with the Madhya Pradesh Government, will see the setup of a 1×660 MW thermal power plant near Amarkantak. Estimated to cost ₹5,600 crore, the project has received the necessary approvals and is likely to commence work by the end of this financial year. It is scheduled to be completed by 2028. Another venture by CIL’s subsidiary, MCL, involves the creation of Mahanadi Basin Power Limited, which is planning a 2×800 MW thermal power plant near its Basundhara Mines. This pithead plant, with a projected cost of ₹15,947 crore, has received considerable interest from various states, with 4,000 MW worth of Power Purchase Agreements in the pipeline. The work on this project is anticipated to begin by the middle of the next year and is also set to be completed by 2028.
The Ministry of Coal’s strategic approach focuses on identifying suitable de-coaled land for setting up new pithead thermal power plants. The cost-effectiveness of power generation at pithead sites is a significant factor, with fixed costs per unit estimated to be around ₹2.5 and variable costs at ₹1.25 per unit, making it possible to generate power at less than ₹4 per unit. This realization comes amidst the anticipation of a surplus of coal in the future.
Notably, in line with the Ministry of Power’s policies, all these thermal power plant projects are being designed with renewable energy potential to ensure a balanced and cost-effective power supply to end-users. The integration of solar power will supplement thermal power generation and contribute to sustainable and eco-friendly energy practices.
