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

Coal India Limited has secured a Letter of Award from the Telangana Power Generation Corporation to establish a major 750 MWh battery energy storage system in Choutuppal. The project, valued at approximately Rs 1,057 crore, will have a capacity of 187.5 MW for four hours and is slated for completion within 18 months. As part of the agreement, Coal India will supply power at a fixed tariff, underscoring its strategic shift into the clean energy sector. This move highlights the state-owned miner's ongoing diversification efforts beyond its traditional coal business.

Key Points: Coal India Wins Rs 1,057 Cr Telangana Battery Storage Project

  • Rs 1,057 crore project
  • 750 MWh battery storage system
  • 18-month completion timeline
  • Power tariff of Rs 3.14 lakh/MW/month
  • Diversification beyond coal mining
2 min read

Coal India bags Rs 1,057 crore battery storage project in Telangana

Coal India awarded a 750 MWh battery energy storage project in Telangana worth Rs 1,057 crore, marking a major clean energy expansion.

"Coal India Limited has received a Letter of Award... for Setting up of 750 MWh BESS Plant at Choutuppal. - Regulatory Filing"

New Delhi, March 29

Coal India Limited on Sunday announced that it has received a Letter of Award for setting up a large battery energy storage project in Telangana, marking a further step in its clean energy expansion.

The order has been awarded by Telangana Power Generation Corporation Limited for developing a 750 MWh battery energy storage system (BESS) at Choutuppal.

The project, which will have a capacity of 187.5 MW for four hours, is estimated to cost Rs 1,057.09 crore.

"Coal India Limited has received a Letter of Award (LOA) from Telangana Power Generation Corporation Limited for Setting up of 750 MWh (187.5 MW for 4 hours) BESS Plant at Choutuppal," it said in its regulatory filing.

The company said the project will be completed within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA).

As part of the deal, Coal India will supply power at a tariff of Rs 3.14 lakh per MW per month.

CIL will also need to submit performance bank guarantees and other required documents within 15 days, after which the formal agreement will be signed.

The company clarified that the contract has been awarded by a domestic entity and does not involve any related party transactions.

This project highlights Coal India's growing focus on diversifying beyond its core coal mining business and entering the renewable and energy transition space.

The company has been steadily expanding its presence in cleaner energy solutions as part of its long-term strategy.

Meanwhile, shares of Coal India ended 0.32 per cent higher at Rs 445.10 on Friday, ahead of the announcement.

The stock has gained over 14 per cent in the past six months, reflecting positive investor sentiment.

On year-to-date (YTD) basis, the share jumped Rs 44.65 or 11.15 per cent.

- IANS

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Reader Comments

S
Sarah B
Interesting pivot. A coal mining giant investing over a thousand crores in battery storage sends a strong signal about the energy transition. Hope the execution is swift and sets a benchmark for other states. The 18-month timeline seems ambitious.
P
Priyanka N
As someone from Hyderabad, we desperately need better power management. Frequent fluctuations during peak hours are a nuisance. If this project in Choutuppal can help stabilize supply, it will be a huge relief. Fingers crossed! 🤞
R
Rohit P
The tariff of Rs 3.14 lakh per MW per month... can some expert explain if this is cost-effective for the state discom? Ultimately, we consumers will bear the cost. Need transparency on whether this leads to lower or higher electricity bills.
V
Vikram M
Great step for energy security! But a respectful criticism: Coal India should also invest significantly in R&D for battery technology within India. We cannot just be installers; we need to build intellectual property and manufacturing capacity for the long term. Jai Hind!
M
Michael C
The stock market has already reacted positively. This strategic diversification de-risks the business model. Investors love a PSU that's adapting to the new energy landscape. Might be a good long-term hold.

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