Rajasthan to Get Cheap Electricity as Thermal Plant to be Set Up Near Coal Mines

Jaipur: Rajasthan Rajya Vidyut Utpadan Nigam and Telangana's government undertaking, Singareni Collieries Company (SCCL), are set to launch a major energy project together. A joint company is being formed, in which Rajasthan Rajya Vidyut Utpadan Nigam will hold 26% equity and SCCL will hold 74% equity.

According to officials from the Utpadan Nigam, this project will be beneficial for consumers in terms of cost, as the thermal plant is being set up near coal mines in Telangana. This will reduce coal transportation costs, and the estimated cost is Rs 5.60 per unit. Currently, new power purchase agreements are costing more than Rs 6 per unit.

Thermal Plant Work to be Completed by 2028

Singareni Collieries Company's possession of its own coal blocks will also ensure an easy supply of coal. The thermal plant will be constructed by BHEL, and the work is claimed to be completed by the year 2028. The Rajasthan government's cabinet approved this just a day ago.

Under the project, an 800 MW thermal power plant will be set up in Telangana, and a 1500 MW solar plant will be established in Rajasthan. Electricity from the thermal plant will be supplied to Rajasthan, while the energy from the solar plant will be supplied to Telangana.

Will Prove to be an Important Model for Both States

Our joint project with Singareni Collieries Company will prove to be an important model of energy cooperation for both states. Establishing the thermal plant near the coal mine will reduce production costs, which will also provide relief to the consumers of the state.
-Devendra Shringi, CMD, State Electricity Production Corporation