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
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
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.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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