The Cabinet Committee on Economic Affairs (CCEA) has given the green light to equity investments totaling Rs 5,607 crore by state-owned South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL) in two thermal power projects, aiming for a combined generation capacity of 2,260 MW. The decision was taken during a CCEA meeting chaired by Prime Minister Narendra Modi on Thursday, according to an official statement.
SECL, in collaboration with Madhya Pradesh Power Generating Company Ltd (MPPGCL), will establish a 660 MW thermal power plant at the Amarkantak Thermal Power Station in Madhya Pradesh. Simultaneously, MCL, through its subsidiary Mahanadi Basin Power Ltd (MBPL), will set up a 2×800 MW thermal power plant in Sundargarh District, Odisha.
SECL’s thermal power project will involve an equity capital of Rs 823 crore (plus or minus 20 percent) and an estimated project capital expenditure of Rs 5,600 crore (plus or minus 20 percent). On the other hand, MCL’s project will witness an investment of Rs 4,784 crore equity capital (plus or minus 20 percent) and an estimated project capex of Rs 15,947 crore (plus or minus 20 percent) through MBPL.
The CCEA has provided its nod to MBPL, a Special Purpose Vehicle (SPV) of MCL, for the establishment of the 2×800 MW Super-Critical Thermal Power Plant.
In addition, the CCEA has approved Coal India Ltd (CIL), the world’s largest coal mining company, for equity investment beyond 30 percent of its net worth in the SECL-MPPGCL joint venture. This strategic investment move by CIL aims to facilitate the creation of two pithead thermal power plants through its subsidiaries, contributing to the goal of providing affordable and accessible power.
The thermal power projects are anticipated to play a crucial role in meeting the growing energy demands of the country and promoting cost-effective power generation.