Hyderabad: The Union Minister of Coal and Mines, G Kishan Reddy, announced that the Coal Ministry has taken a significant step towards ensuring that Telangana’s future electricity needs are met. As part of this effort, NLC (Neyveli Lignite Corporation) India Ltd. has agreed to supply Telangana with 200 megawatts of solar energy every year.
This initiative is part of the Indian Renewable Energy Development Agency (IREDA) scheme, launched by the Central government. NLC India Ltd. is currently setting up a 510 MW solar power plant in the Bibar area of Kutch district in Gujarat. Kutch was chosen for this project due to its vast land area and favorable climate conditions for solar power generation. The solar plant, which is being built at a cost of Rs 1,214 crore, is nearing completion.
The plant is expected to start generating electricity by June 2025. This project will play a crucial role in meeting Telangana’s electricity needs, with the power being available at a rate of Rs 2.57/kWh. Over the next 25 years, this could result in savings of Rs 2,000 crore for Telangana Transco. Additionally, the project aligns with Prime Minister Narendra Modi’s green power generation goals, advancing the nation’s renewable energy initiatives.
In addition to the solar panels, other related equipment for the project is being sourced from Telangana, which will boost local production. This will also create both direct and indirect employment opportunities in the state. Furthermore, the Telangana state government will benefit from revenue in the form of State Goods and Services Tax (SGST). The project will also increase Telangana’s contribution to green energy.
Over its lifetime, the project is expected to supply 12.5 billion units of green energy, which can help offset 8.9 million tonnes of carbon emissions. An important aspect of this project is that all the solar cells used will be domestically produced, supporting the ‘Make in India’ initiative.
Given the importance of this project, Union Minister Kishan Reddy urged the Telangana state government to quickly sign the Power Purchase Agreement (PPA) with NLC to move the project forward.
The Union Minister also mentioned that the Central government had previously supported Telangana in increasing its power generation capacity. This includes the start of two NTPC units with a combined capacity of 1,600 MW in Ramagundam, along with an additional 100 MW from floating solar plants. NTPC is also prepared to start new power generation units with a capacity of 2,400 MW. However, for this to happen, the state government needs to sign the necessary PPAs, allowing NTPC to commence its work.
