Centre creates new SFC posts; clears thermal power projects worth ₹21,547 crore

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₹ 21,547 crore. This projects will be financed by way of equity infusion by the companies and debt. SECL will set up a 660 megawatt (MW) super critical thermal power plant through a joint venture with Madhya Pradesh Power Generating Company.

This entails an equity infusion of ₹ 823 crore by SECL in the joint venture executing the project. This would be 49% of its equity base and the ₹ 5,600 crore project cost, with a 20% variation either way, will be fianced with 70% debt. The plant will come up at Anuppur district in Madhya Pradesh.

MCL will develop a 2x800 MW thermal power plant through Mahanadi Basin Power Ltd, an MCL subsidiary. The CCEA has authorized an equity capital investment of ₹ 4,784 crore for this plant in Sundargarh, Odisha. The project's anticipated capex is about ₹ 15,947 crore.

This initiative aligns with India's strategy to expand its thermal power capacity while also increasing renewable power generation to meet escalating demand. Power Minister RK Singh recently said that India plans to add 80 GW of thermal power capacity by 2030. However, the proportion of coal-fired power in total installed capacity is expected to decrease to 35% from the current 56%.

This renewed emphasis on thermal power projects is a response to the surge in power demand in recent years, with peak demand reaching new record levels for the past two years. On 1 September 2023, India's power demand peaked at 239.9 GW. The Union cabinet also endorsed a few agreements India has signed with other countries and trading blocks.