The Cabinet on Thursday approved setting up of two pithead thermal power plants through joint ventures by subsidiaries South Eastern Coalfields (SECL) and Mahanadi Coalfields (MCL) aimed at providing cheaper power.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Narendra Modi approved proposals to set up a 1×660 MW thermal power plant at Amarkantak Thermal Power Station in Chachai, Madhya Pradesh. The CCEA also approved a 2×800 MW Thermal Power Plant in Sundergarh, Odisha.
The plant at Amarkantak thermal power station will be set through a joint venture between SECL and MPPGCL. Proposal for equity investment at a capital of Rs 823 crore by SECL and 49 per cent equity investment in JV company with an estimated project capex of Rs 5,600 crore has been approved.
For the Sundergarh project, a proposed equity capital of Rs 4,784 crore by MCL with an estimated project capex of Rs 15,947 crore through MBPL has been approved. The Cabinet gave its nod to MBPL, a special purpose vehicle of MCL to set up the plant. According to the reports published in economictimes.indiatimes.com .
“Coal India Limited the largest coal mining company in the world, will set up two Pithead Thermal Power Plants, through its subsidiaries, with a view to provide cheaper power to the country,” the CCEA said in a press release.
