Madhya Pradesh Plans 4,000 MW Thermal Power Expansion

The Madhya Pradesh thermal power sector is set for a major expansion as the state government prepares to sign three key agreements to develop 4,000 MW of new coal-based power capacity.

The purpose of the move is to cater to the future electricity demand and also to enhance the energy security of the state in the long-run.

The projects under the plan are estimated to draw in almost 60000 crore worth of investment. The contracts shall be concluded with the major power manufacturers, such as Adani Power Ltd., Torrent Power Ltd., and Hindustan Thermal Projects Ltd. There is also a 800 MW greenshoe alternative that has been incorporated into the contracts meaning that the capacity can be increased when the need arises.

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All of the suggested thermal power stations will be in an area of Anuppur district of Madhya Pradesh. It is projected that power production by these units will start around 2030, when the state is projected to increase its industrial and household electricity consumption. The authorities reckon that the undertakings will be key in the provision of 24-hour power supply.

The projects are projected to bring powerful economic gains besides providing energy supply. It is expected that the state will create approximately 3,000 direct jobs and almost 5,000 indirect ones, which will stimulate the local employment and allied industries.

As Madhya Pradesh still seeks to increase the capacity of renewable energy, the government still adheres to the fact that Madhya Pradesh thermal power projects are still needed to stabilize the grid and provide base-load power needs. These new agreements are a reasonable compromise between clean energy development and reliable thermal power that will allow fulfilling the long-term state development objectives.