CCEA meeting convened by PM Modi approves Rs 5,607 crore equity investments by Coal India arms in two thermal power projects

The Cabinet Committee on Economic Affairs on Thursday, approved equity investments of Rs 5,607 crore by state-owned South Eastern Coalfields and Mahanadi Coalfields to establish two thermal power projects with a combined generation capacity of 2,260 MW.

According to an official statement, the decision was made at a meeting of the Cabinet Committee on Economic Affairs (CCEA) convened by Prime Minister Narendra Modi on Thursday.

According to the release, South Eastern Coalfields Ltd (SECL) would establish a 660 MW thermal power plant through a joint venture with Madhya Pradesh Power Generating Co. Ltd. (MPPGCL).

Similarly, Mahanadi Coalfields Ltd (MCL) would build a 2x800 MW thermal power plant through Mahanadi Basin Power Ltd (MBPL), a subsidiary of MCL.

SECL will provide equity capital of Rs 823 crore (plus or minus 20 per cent), with an estimated project capex of Rs 5,600 crore (plus or minus 20 per cent) for the proposed 660 MW supercritical thermal power plant at Amarkantak Thermal Power Station in Madhya Pradesh, through a joint venture of SECL and MPPGCL.

The CCEA has authorised MCL's investment of Rs 4,784 crore in equity capital (plus or minus 20 per cent) for the proposed 2×800 MW supercritical thermal power plant in Sundargarh District, Odisha. The project capex is expected to be Rs 15,947 crore (accuracy of plus or minus 20 per cent) through MBPL.

The approval has been awarded to MBPL, an SPV of MCL, to set up the 2×800 MW Super-critical Thermal Power Plant.

The CCEA also approved CIL's equity involvement in the SECL-MPPGCL joint venture in excess of 30% of its net value (Rs 823 crore plus or minus 20 per cent) in the two projects.

Coal India Ltd (CIL), the world's largest coal mining business, would establish the following two pithead thermal power plants through its subsidiaries to provide cheaper power.

With inputs from agencies)