The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the proposal for equity investment by two Coal India (CIL) subsidiaries for setting up two pithead thermal power plants (TPPs) of 2,260 megawatts (MW).
The total equity investment approved by the CCEA for both the power plants is ₹5,607 crore and the cumulative project cost is ₹21,547 crore.
The approval has been accorded for South Eastern Coalfields (SECL) for setting-up a 660 MW TPP through JV of coal miner and Madhya Pradesh Power Generation Company (MPPGCL).
The second project is by Mahanadi Coalfields (MCL) for setting-up a 1,600 MW TPP through Mahanadi Basin Powe (MBPL), a subsidiary of MCL).
“Equity Capital of ₹.823 crore (around 20 per cent) by SECL considering a Debt-Equity Ratio of 70:30 and 49 per cent Equity Investment in JV Company with an estimated Project Capex of ₹ 5,600 crore (accuracy of around 20 per cent) for the proposed 660 MW Supercritical TPP through JV of SECL and MPPGCL at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh,” an official statement said.
Equity Capital of ₹4,784 crore (around 20 per cent) by MCL for the proposed 1,500 MW Super-Critical TPP in Sundargarh District, Odisha with an estimated Project Capex of ₹15,947 crore (accuracy of around 20 per cent) through MBPL, it added. The CCEA also gave approval to MBPL, an SPV of MCL to set up the 1,600 MW Super-Critical TPP.
“Equity Investment by CIL beyond 30 per cent of its net worth in the JV of SECL-MPPGCL (₹.823 Crore around 20 per cent), and in MBPL, a 100 per cent wholly owned subsidiary of MCL (₹4,784 Crore around 20 per cent),” the statement said.
The equity investment will come from the subsidiaries but since CIL is the holding company therefore for accounting purposes CILs equity investment proposal is included, an official source explained.