Order Win
Coal India Bags 600 MW Solar Project at Jalaun Solar Park with Estimated Investment of ₹2,831.11 Crore
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Coal India Limited has received a Letter of Award (LoA) from Bundelkhand Saur Urja Limited for developing a 600 MW solar power project at Jalaun Solar Park, Uttar Pradesh. The project carries an estimated investment of ₹2,831.11 crore, will be executed within 18 months of signing the Power Purchase Agreement (PPA), and marks another significant step in Coal India’s renewable energy expansion strategy.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Award (LoA) for a 600 MW Solar Power Project.
Type: Order Win / Letter of Award
Impact: Positive
Immediate Effect: The order expands Coal India’s renewable energy portfolio, strengthens its transition towards clean energy, and adds a large utility-scale solar asset to its project pipeline.
Key Metrics:
Project Metrics:
- Project Capacity: 600 MW (300 MW × 2)
- Estimated Project Cost: ₹2,831.11 crore
- Solar Tariff: ₹2.73 per kWh
- Execution Timeline: 18 months from signing of the Power Purchase Agreement (PPA)
Highlight:
- Estimated Project Cost: ₹2,831.11 crore
What Happened ?
Coal India Limited announced that it has secured a Letter of Award (LoA) from Bundelkhand Saur Urja Limited for establishing a 600 MW solar power plant at Jalaun Solar Park, Uttar Pradesh.
The project will be developed under a domestic contract and is scheduled for completion within 18 months from execution of the Power Purchase Agreement. Before execution, the company is required to complete regulatory documentation and deposit the applicable solar park development charges.
The project represents another major renewable energy investment as Coal India continues to diversify beyond conventional coal mining into utility-scale clean energy infrastructure.
Key Details
Order Details:
- Awarding Authority: Bundelkhand Saur Urja Limited
- Nature of Award: Letter of Award (LoA)
- Project: Development of a 600 MW Solar Power Plant (300 MW × 2)
- Project Location: Jalaun Solar Park, Uttar Pradesh
- Awarded Tariff: ₹2.73 per kWh
- Estimated Project Cost: ₹2,831.11 crore
- Execution Period: 18 months from signing of the Power Purchase Agreement (PPA)
- Awarding Entity: Domestic
- Coal India will submit all required documents as per the Letter of Award before execution of the PPA, ISA and LRUA.
- Upfront Solar Park Development Charges are required before execution of the Implementation Support Agreement (ISA).
Note:
- The announcement relates to an order award and does not disclose any expected revenue recognition schedule or profitability impact.
Risk Analysis
Summary:
- The order significantly expands Coal India’s renewable energy pipeline; however, successful execution remains dependent on regulatory approvals, contractual milestones and timely project implementation.
Key Risks:
- Project execution can commence only after completion of documentation and execution of PPA, ISA and LRUA.
- Construction timelines may be affected by regulatory approvals or infrastructure readiness.
- Financial returns will depend on timely commissioning and operational performance.
- The announcement does not disclose project financing structure or expected earnings contribution.
Worst Case:
- Delays in statutory approvals, contractual execution or project commissioning could postpone revenue generation and increase project costs.
Risk Level: Medium
Company Commentary
- Coal India has received the Letter of Award from Bundelkhand Saur Urja Limited.
- The company will establish a 600 MW solar power plant at Jalaun Solar Park.
- Required documentation will be completed before execution of PPA, ISA and LRUA.
- The estimated investment for the project is ₹2,831.11 crore.
- The project is scheduled to be completed within 18 months from signing of the PPA.
- The awarding entity is domestic and the transaction is not a related-party transaction.
Official Exchange Filing: Coal India Limited
