CIL Subsidiaries Fueling Growth: CCEA Approves Rs 5,607 Crore for Power Projects

The Cabinet Committee on Economic Affairs (CCEA) has granted approval for equity investments totaling Rs 5,607 crore by two subsidiaries of Coal India Limited (CIL), namely South Eastern Coalfields (SECL) and Mahanadi Coalfields (MCL). These investments are intended to facilitate the establishment of two pithead thermal power projects, collectively generating 2,260 MW. The decision was reached during a CCEA meeting chaired by Prime Minister Narendra Modi on January 18, 2024.

SECL is slated to construct a 660 MW thermal power plant through a joint venture with MPPGCL. Simultaneously, MCL will undertake the development of a 2x800 MW thermal power plant through its subsidiary, Mahanadi Basin Power (MBPL). SECL will contribute Rs 823 crore in equity capital for the proposed 660 MW supercritical thermal power plant, with an estimated project capex of Rs 5,600 crore. This project will be established through the joint venture of SECL and MPPGCL at the Amarkantak thermal power station in Anuppur district, Madhya Pradesh.

Additionally, the CCEA has endorsed an equity investment of Rs 4,784 crore by MCL for the proposed 2,800 MW supercritical thermal power plant located in Sundargarh district, Odisha. The estimated project capex for this venture, to be executed through MBPL, is Rs 15,947 crore. MBPL, functioning as a special purpose vehicle (SPV) of MCL, has received approval to establish the 2,800 MW supercritical thermal power plant.

Furthermore, the CCEA has granted approval for equity investment by CIL beyond 30 percent of its net worth in the joint venture of SECL-MPPGCL, amounting to Rs 823 crore (plus or minus 20 percent) for the two projects.

News by Rahul Yelligetti