Coal India Ltd (CIL) on Sunday, March 29, said it has received a Letter of Award (LoA) from Telangana Power Generation Corporation Ltd for setting up a battery energy storage system (BESS) project.The project involves the development of a 750 MWh (187.5 MW for four hours) BESS plant at Choutuppal, with an estimated project cost of ₹1,057.09 crore, the company said in an exchange filing.
The project will be executed within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA), CIL added.
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As part of the agreement, the company will supply power at a tariff of ₹3.14 lakh per MW per month. It is also required to submit performance bank guarantees and other documents within 15 days, following which the formal agreement will be signed.The order has been awarded by a domestic entity and does not involve any related party transactions, the company said.The development marks Coal India’s continued expansion into the renewable and energy transition space, beyond its core coal mining operations.Also read: Consumer panel asks Ola Electric to replace consumer’s faulty scooter, finds it deficient in serviceShares of CIL closed 0.32% higher at ₹445.10 on Friday, ahead of the announcement. The stock has gained 14.63 over the last six months.
