CCEA Approves Equity Investment By MCL For Thermal Power Plant In Odisha

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the proposal for equity investment by Mahanadi Coalfields Limited (MCL) for setting up 2×800 Mw thermal power plant in Odisha’s Sundargarh district.

The CCEA chaired by Prime Minister Narendra Modi approved equity investment for 2×800 MW Supercritical Thermal Power Plant in Sundergarh district through ‘Mahanadi Basin Power Ltd’ (MBPL), a wholly owned subsidiary of MCL, an official release said.

The CCEA also approved proposal for equity investment by South Eastern Coalfields Limited (SECL) for setting-up 1×660 MW Thermal Power Plant through JV of SECL and MPPGCL.
The CCEA has approved the proposal of equity investments by SECL, MCL and CIL as follows:

(a) Equity Capital of Rs.823 Crore (± 20%) by SECL considering a Debt-Equity Ratio of 70:30 and 49% Equity Investment in JV Company with an estimated Project Capex of Rs.5,600 Crore (accuracy of ±20%) for the proposed 1×660 MW Supercritical Thermal Power Plant through JV of SECL and MPPGCL at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh.

(b) Equity Capital of Rs.4,784 Crore (± 20%) by MCL for the proposed 2×800 MW Super-Critical Thermal Power Plant in Sundargarh District, Odisha with an estimated Project Capex of Rs.15,947 Crore (accuracy of ±20%) through MBPL.

(c) Approval to MBPL, an SPV of MCL to set up the 2×800 MW Super-Critical Thermal Power Plant.

(d) Equity Investment by CIL beyond 30% of its net worth in the JV of SECL-MPPGCL (Rs.823 Crore ± 20%) as at (a) above, and in MBPL, a 100% wholly owned subsidiary of MCL (Rs.4,784 Crore ± 20%) as at point (b) above.

Coal India Limited (CIL), the largest coal mining company in the world, will set up following two Pithead Thermal Power Plants, through its subsidiaries, with a view to provide cheaper power to the country –

1. 1×660 MW Supercritical Coal-Based Thermal Power Plant (TPP) at Amarkantak Thermal Power Station in Village Chachai, Anuppur District, Madhya Pradesh, through JV between SECL and Madhya Pradesh Power Generating Co Ltd (MPPGCL);

2. 2×800 MW Supercritical Thermal Power Plant, in Sundergarh District, Odisha, through ‘Mahanadi Basin Power Ltd’ (MBPL), a Wholly Owned Subsidiary of MCL.