South Eastern Coalfield Ltd (SECL) has signed a memorandum of understanding with Madhya Pradesh Power Generation Company Ltd (MPPGCL) to set up a 660 megawatt thermal power unit.
SECL is an undertaking of state-owned Coal India Ltd and the move marks a foray for CIL into power production, The Indian Express reported.
The coal-fired plant would be built next to the Amarkantak thermal power station at Chachai in the Anuppur district of MP.
Officials were reported as saying that the unit will use air-cooled condenser technology to reduce the amount of water needed for power generation.
“The project will entail an investment of Rs 4,665 crore in which the share of SECL would be around 70%. The operational role would be carried out by MPPGCL while the ownership will be with SECL. The power production is likely to start in a couple of years,” officials were reported as saying.
Moneycontrol could not independently verify the news.
CIL's initiative is a result of an extensive diversification strategy adopted by the Chhattisgarh-based coal producing corporation to go beyond mining. The firm has started pursuing clean energy, solar energy, and thermal power projects, among others, as part of the new initiative.