Guwahati: The fate of the ambitious Rs 16,850 crore Margherita Thermal Power Project in Assam seems to be in a limbo with Union Power Ministry cautioning against its feasibility as a pit head project.
The uncertainty is attributed to the non-availability of sufficient coal in the North Eastern Coalfields (NEC).
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Union Minister of State for Power, Shripad Naik, informed the Lok Sabha on Thursday that the Central Electricity Authority (CEA) had advised the Assam Power Generation Corporation Ltd (APGCL) to revisit the Detailed Project Report (DPR) prepared by NTPC Ltd in 2019.
The project, designed as a 2×800 MW coal-based thermal plant at Margherita, was initially planned to source 4.11 MTPA coal from NEC at a 90% Plant Load Factor.
“Due to insufficient coal availability in NEC, developing the Margherita TPP as a pit head project may not be possible. APGCL was advised to explore coal supply from other subsidiaries of Coal India Limited, such as ECL, BCCL, and CCL,” Naik said in reply to a query by Congress MP Pradyut Bordoloi.
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However, Naik revealed that despite repeated advisories, APGCL has not yet approached Coal India Limited (CIL) for alternative coal linkage.
This delay has further clouded the future of the project, which was expected to play a significant role in Assam’s energy security and industrial growth.
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The DPR, prepared six years ago, pegged the project cost at Rs 16,850 crore, with NEC’s high-grade coal (6,900 kcal/kg GCV) identified as the primary fuel source.
But NEC’s long-standing production constraints have made the coal supply commitment uncertain.
The Union Power Ministry clarified that it has not received any official communication from APGCL regarding plans to abandon the project, keeping the final decision pending.
The Margherita TPP was seen as a landmark initiative to boost power generation in the Northeast, but its dependence on NEC coal has now put the project in jeopardy.