New Delhi, March 29 Coal India Limited (CIL) on Sunday announced that it has received a Letter of Award (LoA) for setting up a large battery energy storage project in Telangana, marking a further step in its clean energy expansion.
The order has been awarded by Telangana Power Generation Corporation Limited for developing a 750 MWh battery energy storage system (BESS) at Choutuppal.
The project, which will have a capacity of 187.5 MW for four hours, is estimated to cost Rs 1,057.09 crore.
“Coal India Limited has received a Letter of Award (LOA) from Telangana Power Generation Corporation Limited for Setting up of 750 MWh (187.5 MW for 4 hours) BESS Plant at Choutuppal,” it said in its regulatory filing.
The company said the project will be completed within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA).
As part of the deal, Coal India will supply power at a tariff of Rs 3.14 lakh per MW per month.
CIL will also need to submit performance bank guarantees and other required documents within 15 days, after which the formal agreement will be signed.
The company clarified that the contract has been awarded by a domestic entity and does not involve any related party transactions.
This project highlights Coal India’s growing focus on diversifying beyond its core coal mining business and entering the renewable and energy transition space.
The company has been steadily expanding its presence in cleaner energy solutions as part of its long-term strategy.
Meanwhile, shares of Coal India ended 0.32 per cent higher at Rs 445.10 on Friday, ahead of the announcement.
The stock has gained over 14 per cent in the past six months, reflecting positive investor sentiment.
On year-to-date (YTD) basis, the share jumped Rs 44.65 or 11.15 per cent.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor