Cabinet approves equity investment

No: -- Dated: Jan, 18 2024

Cabinet approves equity investment by (i) South Eastern Coalfields Limited for setting-up 1×660 MW Thermal Power Plant through JV of SECL and MPPGCL; and (ii) Mahanadi Coalfields Limited for setting-up 2x800 MW Thermal Power Plant through MBPL

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi today approved proposal for equity investment by (i) South Eastern Coalfields Limited (SECL) for setting-up 1×660 MW Thermal Power Plant through JV of SECL and MPPGCL; and (ii) Mahanadi Coalfields Limited (MCL) for setting-up 2x800 MW Thermal Power Plant through Mahanadi Basin Powe Ltd (MBPL - a subsidiary of MCL).

The CCEA has approved the proposal of equity investments by SECL, MCL and CIL as follows:

  (a)    Equity Capital of Rs.823 Crore (± 20%) by SECL considering a Debt-Equity Ratio of 70:30 and 49% Equity Investment in JV Company with an estimated Project Capex of Rs.5,600 Crore (accuracy of ±20%) for the proposed 1×660 MW Supercritical Thermal Power Plant through JV of SECL and MPPGCL at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh.

  (b)    Equity Capital of Rs.4,784 Crore (± 20%) by MCL for the proposed 2×800 MW Super-Critical Thermal Power Plant in Sundargarh District, Odisha with an estimated Project Capex of Rs.15,947 Crore (accuracy of ±20%) through MBPL.

  (c)     Approval to MBPL, an SPV of MCL to set up the 2×800 MW Super-Critical Thermal Power Plant.

  (d)    Equity Investment by CIL beyond 30% of its net worth in the JV of SECL-MPPGCL (Rs.823 Crore ± 20%) as at (a) above, and in MBPL, a 100% wholly owned subsidiary of MCL (Rs.4,784 Crore ± 20%) as at point (b) above.

Coal India Limited (CIL), the largest coal mining company in the world, will set up following two Pithead Thermal Power Plants, through its subsidiaries, with a view to provide cheaper power to the country –

1. 1×660 MW Supercritical Coal-Based Thermal Power Plant (TPP) at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh, through JV between SECL and Madhya Pradesh Power Generating Co Ltd (MPPGCL);
2. 2×800 MW Supercritical Thermal Power Plant, in Sundergarh District, Odisha, through ‘Mahanadi Basin Power Ltd’ (MBPL), a Wholly Owned Subsidiary of MCL.

Courtesy – Press Information Bureau, Government of India