CIL, NLCIL to set up multiple power plants to meet energy needs

NLCIL, in partnership with UP Govt, will build 3x660 MW thermal power plant in Ghatampur near Kanpur, while CIL is working on two plants at Amarkantak in MP

CIL NLCIL power plants

New Delhi: Coal India Ltd. (CIL) and NLC India Ltd (NLCIL) are working on a plan to set up multiple thermal power plants across the country to meet growing energy demand.

According to a coal ministry statement, NLCIL, in partnership with the Uttar Pradesh government, will construct a 3×660 MW thermal power plant in Ghatampur near Kanpur. The project, estimated to cost of ₹19,406 crore. The plant up on its operation will supply 1478.28 MW of power to Uttar Pradesh and 492.72 MW to Assam.

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A senior NLCIL official said that the first plant of the project is expected to start power generation by the end of this year. Besides, the coal company is also working on a 3×800 MW pithead thermal power plant at Talabira in Odisha, projected to cost ₹19,422 crore. The plant will supply 1450 MW power to Tamil Nadu, 100 MW to Puducherry, and 400 MW to Kerala. The project is expected to commence by year-end and aims for completion by 2028-29.

Coal India is planning two thermal power plants, with one located near Amarkantak in collaboration with the Madhya Pradesh government. The plant, with a capacity of 1×660 MW and an estimated cost of ₹5,600 crore, is set to begin construction by the end of this financial year and targeted for completion by 2028.

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In addition, MCL, a subsidiary of CIL, is establishing Mahanadi Basin Power Ltd., a fully-owned subsidiary, to build a 2×800 MW thermal power plant near Basundhara Mines. The project, costing ₹15,947 crore, has garnered interest from several states for 4000 MW worth of Power Purchase Agreements (PPAs).

Work on this project is expected to begin around the middle of next year and targeted completion date is set for 2028, it added.

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The ministry of coal has advised all subsidiaries of CIL to find suitable de-coaled land for establishing new pithead thermal power plants. Setting up power plants at pithead is more cost-effective, with a tentatively fixed cost of approximately ₹2.5 and a variable cost of about ₹1.25 per unit, making it possible to generate power at less than ₹4 per unit.

This decision comes as coal is projected to be in surplus in the future, and to ensure sustainability in operations for CIL and NLCIL with setting up of new thermal power plants.

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As per the policies of the ministry of power, required renewable energy potential is also been created along with the thermal power plant so that the power generation can be augmented with the combination of thermal as well as solar. This will help to supply power in cost effective manner to the end users.

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