The Union government on Thursday approved coal allocation to Madhya Pradesh for the establishment of thermal power plants with a combined installed capacity of 4,100 megawatts, an official said.
This marks the first approval in five years by the Centre’s high-level inter-departmental committee following a proposal from the state's energy department, submitted in response to rising power demand, the official added.
In 2019, the Centre sanctioned coal allocation for fossil fuel-based plants with a total capacity of 1,360 MW, the official noted.
Madhya Pradesh Chief Minister Mohan Yadav expressed gratitude to Prime Minister Narendra Modi for the allocation and instructed the state’s energy department to issue tenders for the construction of the power plants.
According to MP Energy Additional Chief Secretary Neeraj Mandloi, the new coal-fired power plants will attract investments worth Rs 25,000 crore and generate substantial direct and indirect employment opportunities.
"The coal allocation will enable Madhya Pradesh to remain self-reliant in energy and provide affordable, high-quality electricity to domestic consumers, industries and farmers," Mandloi said.
Government data shows that the current installed thermal energy capacity of MP Power Generation Company stands at 4,570 MW.