Coal India Wins ₹1,057 Cr Battery Storage Project from Telangana Power Generation Corporation
Kolkata: State-owned mining giant Coal India Limited has received a Letter of Award (LOA) from Telangana Power Generation Corporation Limited (TSGENCO) for setting up a 750 MWh Battery Energy Storage System (BESS) project at Choutuppal in Telangana.
The disclosure was submitted to stock exchanges including Bombay Stock Exchange Limited and National Stock Exchange of India Limited under SEBI listing regulations.
Project capacity and financial details
The awarded project involves building a 187.5 MW / 750 MWh BESS plant designed to provide energy storage for four hours. Key financial and operational highlights include:
- Estimated project cost: ₹1,057.09 crore
- Tariff: ₹3.14 lakh per MW per month
- Execution timeline: 18 months from signing of BESPA (Battery Energy Storage Purchase Agreement)
- Nature of contract: Domestic order
- Promoter interest: No related party involvement
Coal India must submit required documents within 15 days and provide a Performance Bank Guarantee before signing the BESPA.
Strategic importance for energy transition
The order marks a major step in Coal India’s diversification into clean and renewable energy infrastructure. While traditionally a coal producer, the company has been actively exploring solar, thermal and energy storage projects to align with India’s energy transition goals.
Battery Energy Storage Systems are critical for:
- Stabilizing renewable power supply
- Managing peak demand
- Enhancing grid reliability
This project will help Telangana strengthen its power infrastructure and support renewable integration.
Market significance
The LOA signals Coal India’s growing role beyond coal mining, positioning the company as a future participant in India’s clean energy ecosystem. The project also reflects increasing investments in grid-scale battery storage across the country.