New Delhi, Jan 18 (IANS): The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Thursday approved two proposals of Coal India Limited (CIL) to set up two pithead thermal power plants, through its subsidiaries, entailing a total investment of Rs 21,547 crore.

The proposal involves CIL’s subsidiaries South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL).

The CCEA has approved the proposal of equity investments by SECL, MCL and CIL.

SECL will set up a 1×660 MW Thermal Power Plant through JV with state-owned Madhya Pradesh Power Generating Co Ltd (MPPGCL), while Mahanadi Coalfields Limited (MCL) proposes to set a 2x800 MW Thermal Power Plant through its subsidiary Mahanadi Basin Power Ltd (MBPL).

The SECL proposal entails an equity capital of Rs.823 crore (± 20 per cent) by SECL considering a debt-equity ratio of 70:30 and 49 per cent equity investment in the JV company with an estimated project capex of Rs 5,600 crore (accuracy of ±20 per cent) for the proposed 1×660 MW Supercritical Thermal Power Plant in Madhya Pradesh’s Anuppur district.

The MCL proposal involves equity capital of Rs 4,784 crore (± 20 per cent) by MCL for the proposed 2×800 MW Super-Critical Thermal Power Plant in Sundargarh District, Odisha with an estimated Project Capex of Rs.15,947 crore (accuracy of ±20 per cent) through MBPL.

The CCEA has approved the equity Investment by CIL beyond 30 per cent of its net worth in the JV of SECL-MPPGCL (Rs.823 Crore ± 20 per cent) and in MBPL, a 100 per cent wholly owned subsidiary of MCL (Rs.4,784 Crore ± 20 per cent).