New Delhi: State-run NTPC Ltd’s proposed Rs 15,000 crore coal expansion project at Rajasthan’s Chhabra Thermal Power Plant faces significant uncertainty due to regulatory delays, coal logistics challenges, and pending approvals. The project, which aimed to add 1,320 MW of coal-based capacity through two units of 660 MW each, may be cancelled, according to recent reviews by the Energy Assessment Committee (EAC).
Regulatory and Logistical Challenges Stall Expansion
The Memorandum of Understanding (MoU) signed between Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) and NTPC for the Chhabra expansion has come under critical review. Officials cited unresolved regulatory approvals, fuel transfer arrangements, and coal logistics issues as major factors making the execution of the project uncertain at this stage.
The EAC noted that projects under MoUs should not be automatically treated as committed capacity. In the Chhabra case, the committee observed that the MoU was only a preliminary expression of intent and not a binding project agreement. The actual feasibility depends on techno-economic assessments, regulatory clearances, coal supply arrangements, and power purchase agreements.
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MoU vs Binding Project Agreement
The cited document highlights a key distinction: an MoU represents intent, facilitating discussions on land availability, statutory clearances, and infrastructure, but does not guarantee project commissioning. The EAC emphasized that each project must be examined individually to assess its viability rather than assuming it will automatically move forward based on preliminary agreements.
Chhabra Plant’s Existing Capacity and Proposed Expansion
The Chhabra Thermal Power Plant, located in Baran district, Rajasthan, currently has an installed capacity of 2,320 MW, including:
- Four units of 250 MW
- Two units of 660 MW
The NTPC-led proposed expansion was expected to boost the state’s coal-based power portfolio significantly, with an investment of Rs 15,000 crore, making it one of the largest coal expansion initiatives planned in Rajasthan.
Broader Coal Expansion Plans in Rajasthan
While the Chhabra expansion faces uncertainty, Rajasthan has approved other coal-based projects, including expansions at the Kalisindh Thermal Power Project. Regulators are reportedly tightening scrutiny of coal power projects across the state, aiming to reduce execution risks and ensure compliance amid environmental and logistical challenges.
About NTPC
NTPC Ltd, India’s largest energy conglomerate, is a state-owned Public Sector Undertaking under the Ministry of Power. It focuses on power generation, renewable energy, and energy infrastructure development across India. Over the years, NTPC has built a diversified energy portfolio and continues to play a pivotal role in supporting India’s energy security and sustainable power transition.
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