Coal India Wins Rs 1,057 Crore Battery Storage Project in Telangana

Coal India Secures Major Clean Energy Project​

Coal India Limited (CIL) has received a Letter of Award (LoA) to set up a large-scale battery energy storage system (BESS) in Telangana, marking a significant step in its clean energy expansion strategy.

The project has been awarded by Telangana Power Generation Corporation Limited and will be developed at Choutuppal.

Project Details and Capacity​

• Total Capacity: 750 MWh
• Power Output: 187.5 MW for four hours
• Project Cost: Rs 1,057.09 crore

This large-scale BESS project will enhance grid stability and support renewable energy integration in the region.

Timeline and Execution Plan​

Coal India aims to complete the project within 18 months from signing the Battery Energy Storage Purchase Agreement (BESPA).

Key requirements include:

• Submission of performance bank guarantees
• Completion of necessary documentation within 15 days
• Formal agreement signing post compliance

Tariff and Commercial Terms​

Under the agreement, Coal India will supply power at a tariff of Rs 3.14 lakh per MW per month, ensuring a steady revenue stream from the project.

The company clarified that:

• The contract is with a domestic entity
• No related party transactions are involved

Strategic Shift Towards Clean Energy​

This project underscores Coal India’s ongoing efforts to diversify beyond its traditional coal mining operations. The company is increasingly focusing on:

• Renewable energy solutions
• Energy storage systems
• Long-term sustainability initiatives

The move aligns with India’s broader energy transition goals and the push for cleaner power infrastructure.

Stock Performance​

Shares of Coal India reflected positive investor sentiment:

• Closed at Rs 445.10, up 0.32% on Friday
• Gained over 14% in the past six months
• Up 11.15% year-to-date, rising by Rs 44.65

Conclusion​

Coal India’s entry into large-scale battery energy storage marks a key milestone in its diversification journey. With increasing investments in clean energy infrastructure, the company is positioning itself as a major player in India’s evolving energy landscape.