CCEA Approves Rs 5,607cr Investment by CIL Subsidiaries for Power Plants

The Cabinet Committee on Economic Affairs (CCEA) has approved equity investments of Rs 5,607 crore by two Coal India (CIL) subsidiaries, South Eastern Coalfields and Mahanadi Coalfields to set up two pithead thermal power projects with a total generation capacity of 2,260 MW. The decision was taken at a meeting of the CCEA chaired by Prime Minister Narendra Modi.

South Eastern Coalfields (SECL) will set up a 660 MW thermal power plant through a joint venture of SECL and MPPGCL. Similarly, Mahanadi Coalfields (MCL) will set up a 2x800 MW thermal power plant through Mahanadi Basin Power (MBPL), which is a subsidiary of MCL. The equity capital of Rs 823 crore will be made by SECL with an estimated project capex of Rs 5,600 crore for the proposed 660 MW supercritical thermal power plant through JV of SECL and MPPGCL at Amarkantak thermal power station in Anuppur district of Madhya Pradesh.

The CCEA has also approved an investment of Rs 4,784 crore equity capital by MCL for the proposed 2,800 MW supercritical thermal power plant in Sundargarh district of Odisha, with an estimated project capex of Rs 15,947 crore through MBPL. It has given approval to MBPL, an SPV of MCL to set up the 2,800 MW super-critical thermal power plant.

The CCEA approved equity investment by CIL beyond 30 percent of its net worth in the JV of SECL-MPPGCL (Rs 823 crore plus or minus 20 percent) in the two projects.