Coal India Limited has received a Letter of Award (LOA) from Telangana Power Generation Corporation Limited for the development of a 750 MWh Battery Energy Storage System (BESS) project at Choutuppal, marking a significant step in the company’s diversification into clean energy infrastructure.
The project entails the installation of a 187.5 MW BESS with a storage duration of four hours, to be executed under a tariff of ₹3.14 lakh per MW per month. The estimated project cost stands at ₹1,057.09 crore, underscoring the scale and strategic importance of the initiative in supporting grid stability and renewable energy integration.
As per the terms of the LOA, Coal India is required to submit the necessary documentation within 15 days, followed by the signing of the Battery Energy Storage Purchase Agreement (BESPA). Additionally, the company will need to furnish a Performance Bank Guarantee (PBG) as part of the contractual obligations.
The contract has been awarded by a domestic entity and does not involve any related party transactions. Furthermore, Coal India has confirmed that neither its promoters nor group companies hold any interest in the awarding entity.
The execution timeline for the project is set at 18 months from the date of signing the BESPA. Upon completion, the BESS facility is expected to play a crucial role in enhancing energy storage capabilities and ensuring reliable power supply in Telangana.
This development aligns with Coal India’s broader strategy to expand its footprint beyond coal mining and actively participate in India’s evolving energy landscape, particularly in the domain of sustainable and flexible power solutions.
