Coal subsidiaries embrace diversification with New Thermal Power Plants

03 Aug 2023 CW Team

Additionally, NLCIL is also gearing up to set up a 3 X 800 MW thermal power plant at Talabira in Odisha. This plant will be located near the Talabira coal mines of NLCIL, with a project cost of Rs 194.22 billion. The land acquisition and clearances are well underway, and the tendering process for the project is in its final stages. The construction is expected to commence by the end of this year. Once completed by the year 2028-29, this thermal power plant will supply 1450 MW to Tamil Nadu, 100 MW to Pondicherry, and 400 MW to Kerala.

CIL, on the other hand, has its own plans to set up two thermal power plants. One of these plants is a joint venture with the government of Madhya Pradesh, located near Amarkantak, and is estimated to be 1x660 MW with a cost of Rs 56 billion. The project is awaiting advanced approval and will be implemented through a joint venture between SECL (Coal India subsidiary) and Madhya Pradesh Power Generating Company. Work on this project is expected to commence by the end of this financial year and to be completed by 2028. The necessary land for the project has already been arranged.

Another subsidiary of CIL, MCL, has established Mahanadi Basin Power, a fully owned subsidiary, with plans to set up a 2x800 MW thermal power plant near its Basundhara Mines, another pithead plant. Interest from different states has resulted in 4000 MW worth of Power Purchase Agreements (PPAs) in the pipeline. The estimated cost for this project is Rs 159.47 billion, and work is expected to commence by the middle of the next year, with completion scheduled for 2028.

The ministry of Coal has advised all subsidiaries of CIL to identify suitable de-coaled land that can be used for the establishment of new pithead thermal power plants. Power generation at pithead is economically advantageous, as the fixed cost per unit is approximately Rs 2.5, and the variable cost is around 1.25 rupees per unit. This makes it possible to generate power at pithead at less than four rupees per unit. Given the expectation of coal surplus in the future, the Ministry of Coal emphasises the importance of setting up new thermal power plants for the sustainability of operations among CIL, NCLCIL, and SCCL subsidiaries.

To align with the Ministry of Power's policies, efforts are being made to create the required potential for renewable energy alongside thermal power plants. This combination of thermal and solar power generation will enable cost-effective supply to end users.

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The Ministry of Coal is actively encouraging coal subsidiaries to diversify on a large scale, taking into account the future of the coal sector. In line with this vision, NLCIL has planned to establish two thermal power plants. One of these plants, located in Ghatampur near Kanpur, is expected to generate three X 660 MW of power at a cost of Rs. 194.06 billion. The project is currently in the implementation phase, and the first phase is anticipated to be operational by the end of this year. This power plant is a joint venture between NLCIL and the Government of Uttar Pradesh, and it will supply 1478.28 MW to the state of UP and 492.72 MW to Assam.Additionally, NLCIL is also gearing up to set up a 3 X 800 MW thermal power plant at Talabira in Odisha. This plant will be located near the Talabira coal mines of NLCIL, with a project cost of Rs 194.22 billion. The land acquisition and clearances are well underway, and the tendering process for the project is in its final stages. The construction is expected to commence by the end of this year. Once completed by the year 2028-29, this thermal power plant will supply 1450 MW to Tamil Nadu, 100 MW to Pondicherry, and 400 MW to Kerala.CIL, on the other hand, has its own plans to set up two thermal power plants. One of these plants is a joint venture with the government of Madhya Pradesh, located near Amarkantak, and is estimated to be 1x660 MW with a cost of Rs 56 billion. The project is awaiting advanced approval and will be implemented through a joint venture between SECL (Coal India subsidiary) and Madhya Pradesh Power Generating Company. Work on this project is expected to commence by the end of this financial year and to be completed by 2028. The necessary land for the project has already been arranged.Another subsidiary of CIL, MCL, has established Mahanadi Basin Power, a fully owned subsidiary, with plans to set up a 2x800 MW thermal power plant near its Basundhara Mines, another pithead plant. Interest from different states has resulted in 4000 MW worth of Power Purchase Agreements (PPAs) in the pipeline. The estimated cost for this project is Rs 159.47 billion, and work is expected to commence by the middle of the next year, with completion scheduled for 2028.The ministry of Coal has advised all subsidiaries of CIL to identify suitable de-coaled land that can be used for the establishment of new pithead thermal power plants. Power generation at pithead is economically advantageous, as the fixed cost per unit is approximately Rs 2.5, and the variable cost is around 1.25 rupees per unit. This makes it possible to generate power at pithead at less than four rupees per unit. Given the expectation of coal surplus in the future, the Ministry of Coal emphasises the importance of setting up new thermal power plants for the sustainability of operations among CIL, NCLCIL, and SCCL subsidiaries.To align with the Ministry of Power's policies, efforts are being made to create the required potential for renewable energy alongside thermal power plants. This combination of thermal and solar power generation will enable cost-effective supply to end users.

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