New Delhi: State-owned Coal India Limited (CIL) has secured a major renewable energy project with the award of a 600 MW solar power plant in Uttar Pradesh, marking another significant step in the company’s clean energy expansion strategy.
The project, valued at approximately ₹2,831.11 crore, was awarded through a competitive bidding process and will be developed inside the Jalaun Solar Park. The development aligns with Coal India’s long-term strategy of diversifying beyond coal mining while supporting India’s renewable energy transition.
Coal India Secures 600 MW Solar Project
According to a regulatory filing, the project has been awarded by Bundelkhand Saur Urja Limited, a domestic solar energy development company.
The solar facility will have a total installed capacity of 600 MW, which will be developed in two phases of 300 MW each.
Once operational, Coal India will supply electricity generated from the project at a fixed tariff of ₹2.73 per unit (kWh) under a long-term Power Purchase Agreement (PPA).
The company is required to commission the project within 18 months from the signing of the PPA.
Project to Be Developed at Jalaun Solar Park
The solar power project will be located within Jalaun Solar Park in Uttar Pradesh, one of the state’s key renewable energy development zones.
The large-scale solar installation is expected to contribute significantly to India’s clean energy capacity while supporting the country’s ambitious renewable energy targets.
The project also reinforces Uttar Pradesh’s growing role in India’s renewable energy landscape.
Key Project Highlights
- Project Capacity: 600 MW (300 MW × 2)
- Project Cost: Approximately ₹2,831.11 crore
- Project Location: Jalaun Solar Park, Uttar Pradesh
- Awarding Authority: Bundelkhand Saur Urja Limited
- Power Tariff: ₹2.73 per kWh
- Completion Timeline: Within 18 months after signing the Power Purchase Agreement
Next Steps Before Construction Begins
Before commencing construction, Coal India will complete several procedural and contractual requirements.
These include:
- Submission of corporate and financial documentation required under the Letter of Award
- Payment of mandatory Solar Park Development charges
- Execution of key project agreements
The company will subsequently sign the:
- Power Purchase Agreement (PPA)
- Implementation Support Agreement (ISA)
- Land Right Use Agreement (LRUA)
Completion of these formalities will enable the project to move into the construction phase.
Coal India Confirms Transparent Bidding Process
Coal India stated that the project was secured through an open and competitive bidding process.
The company also clarified that:
- There are no promoter or director interests in Bundelkhand Saur Urja Limited.
- The transaction does not qualify as a related-party transaction.
- The project was awarded independently under standard market procedures.
These disclosures were made as part of the company’s regulatory compliance requirements for listed entities.
Renewable Energy Becomes a Strategic Growth Area
Coal India has been steadily increasing its investments in renewable energy as part of its diversification strategy.
While remaining India’s largest coal producer, the company has expanded its focus toward:
- Utility-scale solar projects
- Clean energy generation
- Sustainable infrastructure
- Energy transition initiatives
The latest solar project further strengthens Coal India’s renewable energy portfolio while supporting India’s broader objective of increasing non-fossil fuel power generation.
Supporting India’s Energy Transition
India continues to accelerate investments in renewable energy to meet rising electricity demand while reducing carbon emissions.
Large-scale solar projects integrated into dedicated solar parks play an important role in:
- Expanding renewable energy capacity
- Improving energy security
- Supporting grid decarbonisation
- Reducing dependence on fossil fuels
Projects such as Coal India’s 600 MW solar development contribute to India’s long-term renewable energy and net-zero ambitions.
Outlook
Coal India’s ₹2,831 crore solar project represents another milestone in the transformation of India’s energy sector.
As traditional energy companies increasingly diversify into renewable power, investments in utility-scale solar infrastructure are expected to play a critical role in supporting sustainable economic growth and strengthening the country’s clean energy ecosystem.
The successful execution of the Jalaun Solar Park project will further position Coal India as an emerging player in India’s renewable energy market while complementing its core mining business with long-term clean energy assets.
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