Coal India Signs ₹12,800 Crore Joint Venture to Expand 1,600 MW Thermal Power Capacity in Uttar Pradesh

Lucknow: Coal India Limited (CIL) has signed a ₹12,800 crore joint venture agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) to develop a 1,600 MW thermal power project in Uttar Pradesh, strengthening the state’s power generation capacity and supporting India’s growing electricity demand.

The project will involve the construction of two 800 MW supercritical thermal power units at the Obra Thermal Power Station in Sonbhadra district. The expansion is aimed at improving power availability in Uttar Pradesh while utilizing advanced supercritical technology to enhance fuel efficiency and reduce emissions compared to conventional coal-fired plants.

The joint venture reflects Coal India’s strategy to diversify its business beyond coal mining into integrated energy generation. By partnering with UPRVUNL, the company aims to leverage its coal resources and expertise to ensure a reliable fuel supply for the project while contributing to the state’s long-term energy security.

The proposed thermal power expansion is expected to create significant employment opportunities during the construction and operational phases, stimulate economic activity in the region, and strengthen Uttar Pradesh’s electricity infrastructure. The project is also expected to support industrial growth and meet rising power demand driven by urbanization and economic development.

Officials said the initiative complements India’s broader energy strategy, which focuses on balancing renewable energy expansion with dependable baseload thermal power to ensure grid stability and uninterrupted electricity supply.

The joint venture marks one of the largest recent investments in the state’s power sector and underscores the continued importance of modern, efficient thermal power plants in India’s evolving energy mix.