Rajasthan Withdraws Tender For 3,200 MW Coal Power Project

29 Jun 2026 CW Team

Capacity concerns had been raised by experts and consumer groups, who questioned the need for additional thermal capacity. The Central Electricity Authority's Resource Adequacy Plan indicated that Rajasthan's projected power demand could be met without adding another 3,200 MW coal-fired plant during the planning period. The Rajasthan Electricity Regulatory Commission had asked RUVITL to justify the requirement for the proposed capacity addition and imposed conditions on the project. The regulator's conditions sought clearer demand forecasts and procurement rationale.

The tender was originally issued in December 2024 and had undergone multiple extensions before being scrapped. Industry observers said the withdrawal reflected growing confidence in Rajasthan's expanding renewable energy capacity and in the increasing deployment of battery energy storage systems (BESS). They added that improved access to interstate power supplies was also a factor reducing the need for new coal-based generation. Analysts said the change would accelerate investment in grid flexibility.

The decision is likely to influence future procurement strategies as regulators and policymakers reassess capacity planning and system flexibility. Stakeholders will monitor grid reliability and storage integration while balancing affordability and energy security. RUVITL and state authorities are expected to focus on flexible contracting, integration of renewables and storage assets, and measures to ensure adequate supply during peak demand periods.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Rajasthan government has withdrawn a tender for long-term power procurement from a proposed 3,200 Megawatt (MW) coal-based power plant after an order issued on June 11 by Rajasthan Urja Vikas and IT Services Ltd (RUVITL). The tender had been floated under the Design, Build, Finance, Own and Operate (DBFOO) model and was intended to meet the state's future electricity requirements. Officials said the action was aimed at avoiding costs associated with surplus generation capacity. The government said it was mindful of the risks of locking in long-term fossil fuel assets. Capacity concerns had been raised by experts and consumer groups, who questioned the need for additional thermal capacity. The Central Electricity Authority's Resource Adequacy Plan indicated that Rajasthan's projected power demand could be met without adding another 3,200 MW coal-fired plant during the planning period. The Rajasthan Electricity Regulatory Commission had asked RUVITL to justify the requirement for the proposed capacity addition and imposed conditions on the project. The regulator's conditions sought clearer demand forecasts and procurement rationale. The tender was originally issued in December 2024 and had undergone multiple extensions before being scrapped. Industry observers said the withdrawal reflected growing confidence in Rajasthan's expanding renewable energy capacity and in the increasing deployment of battery energy storage systems (BESS). They added that improved access to interstate power supplies was also a factor reducing the need for new coal-based generation. Analysts said the change would accelerate investment in grid flexibility. The decision is likely to influence future procurement strategies as regulators and policymakers reassess capacity planning and system flexibility. Stakeholders will monitor grid reliability and storage integration while balancing affordability and energy security. RUVITL and state authorities are expected to focus on flexible contracting, integration of renewables and storage assets, and measures to ensure adequate supply during peak demand periods.

Infrastructure Transport

29 Jun 2026

Third Railway Line Between Tatanagar And Adityapur Likely By September

The third railway line between Tatanagar and Adityapur is expected to be commissioned by September as work on the corridor advances, according to railway sources. The project to add a fourth line on the busy route is progressing and has been allocated Rs 50.89 billion (bn) in funding. The allocation underscores the focus on increasing capacity and easing congestion on the corridor. Relevant timetables are being adjusted to integrate the new capacity into regular operations. Construction activity has involved track laying, formation work and signalling upgrades along strategic stretches, with m..

Infrastructure Transport

29 Jun 2026

Indian Railways Approves Rs 2.7 bn Kavach Rollout in Odisha

Indian Railways has approved a Rs 2.7 billion (Rs 2.7 bn) plan to install the Kavach train collision avoidance system on 631 route kilometres in the East Coast Railway zone. The Ministry of Railways said the work will form part of a wider Kavach deployment programme that relies on an LTE based communication backbone rather than a standalone installation. The approval marks the latest stage in the steady expansion of the indigenous safety technology across the national network. The decision aims to enhance safety and reliability on corridors serving Odisha and adjoining areas. The project will ..

Infrastructure Transport

29 Jun 2026

Indian Railways Accelerates Modernisation Drive

Indian Railways utilised nearly 30 per cent of its capital expenditure budget for FY2026-27 within the first two months of the financial year, spending more than Rs 840 billion (bn) in April and May against a planned outlay of Rs 2.93 trillion (tn) for the year. The Union Budget allocated Rs 2.93 tn in total capex, comprising Rs 2.81 tn through gross budgetary support and Rs 120 bn from extra-budgetary resources. The early absorption indicates robust project execution and an aggressive infrastructure push. A significant share of the spending is being channelled towards track infrastructure, in..