Mahanadi Coalfields to Expand its Thermal Power Capacity by 2400MW

Mahanadi Coalfields Ltd, a subsidiary of Coal India, may expand its upcoming thermal power plant in Odisha's Sundargarh district by 2400 MW in phase-II, bringing the unit's total capacity to 4,000 MW. The first phase of the project, totaling 1,600 MW, is expected to begin construction in the coming fiscal year and be completed in 2028.

According to people familiar with the situation, the land for the project was previously allotted for the Bedabahal ultra mega power project of 4,000 MW, which was eventually scrapped. MCL then purchased the land from PFC Consulting Ltd after no other thermal generating company expressed interest, according to the company.

"There is definitely a demand for the project. Interest for almost 3200 MW has been received so far. But the company may first look to complete phase-I," said one of the persons, who did not wish to be identified.

The government is pushing for thermal capacity additions after a long pause, as the country's demand has risen sharply and is expected to rise further in the future. Thermal energy was written off prematurely a few years ago, according to power minister RK Singh in November. He had stated that thermal cannot be written off until energy storage becomes viable.

Thermal power will remain until energy storage becomes cost-effective for round-the-clock supply via renewable energy, according to the minister. Non-solar hours will be a serious challenge, he said, given rising power demand and weather events like the one in August this year.