Coal India Limited (CIL) has successfully secured a Letter of Award (LOA) from the Telangana Power Generation Corporation Limited (TS Genco). The contract is for the establishment of a 750 MWh (187.5 MW for 4 hours) Battery Energy Storage System (BESS) Plant at Choutuppal. The estimated project cost for this domestic project is substantial, valued at ₹1057.09 Crore, with an execution timeline of 18 months post-agreement signing.
Coal India Secures Major Energy Storage Contract
Coal India Limited (CIL) announced on March 28, 2026, that it has received a Letter of Award (LOA) from the Telangana Power Generation Corporation Limited. This significant contract involves the Setting up of a 750 MWh (187.5 MW for 4 hours) BESS Plant located at Choutuppal.
Project Details and Financial Outlay
This award is classified as a Domestic Entity contract. The specific tariff agreed upon for the project is @ Rs. 3.14 lakh/MW/Month. The broad consideration or estimated project cost for setting up the 187.5 MW/ 750 MWh facility is calculated to be approximately Rs. 1057.09 Crore.
Execution Timeline
The agreement mandates that all required documents must be submitted as per the LOA within 15 Days, followed by the signing of the BESPA (BESS Purchase and Sale Agreement). The total execution period for the project is stipulated as 18 months from the date of signing the BESPA. CIL is also required to provide a Performance Bank Guarantee (PBG) as part of the terms.
Related Party Assessment
In compliance with disclosure norms, CIL confirmed that neither the promoter nor the promoter group has any interest in the awarding entity. Furthermore, the contract is confirmed not to fall within the definition of related party transactions.
Source: BSE
