Uttar Pradesh govt approves coal mining project of ₹2,200 crore

The Uttar Pradesh government has approved the proposal to invest more than ₹ 2,200 crore for mining coal in a Jharkhand coal block to boost thermal power generation and pare input costs.

 

Coal from the Pachwara South Coal Block, Jharkhand will feed the 1980 Megawatt (3x660 Mw) supercritical Ghatampur Thermal Power Station in Kanpur Nagar district, operated by the Neyveli Uttar Pradesh Power Limited (NUPPL).

 

“The utilisation of coal from the Jharkhand block will reduce the cost of power generation, thereby ensuring affordable and uninterrupted power supply to Uttar Pradesh,” a senior official said.

 

NUUPL is a joint venture between UP Rajya Vidyut Utpadan Nigam Limited and Neyveli Lignite Corporation Limited in the share of 49 percent and 51 percent respectively.

   

The ₹ 2,242 crore mining project will be financed through 70:30 debt- equity mix and has received approval from the Yogi Aditynath cabinet. The Union ministry of coal had earlier allocated the Pachwara South block to NUPPL.

 

Mining operations began on December 19, 2025 with the coal extraction expected to start from August 2026.

 

The first and second units of the Ghatampur Thermal Power Station became commercially operational in December 2024, and December 2025 respectively.

 

According to UP Energy Minister A K Sharma, the state has augmented power capacity by almost 4,000 Mw and plans to add another 5,000 Mw in 2026.

 

Of the total power consumption in Uttar Pradesh, thermal sources account for over 26,000 Mw, including 9,000 Mw from state units, 8,800 Mw from private power producers and over 7,600 Mw from central thermal plants.

 

At the same time, the state is ramping up its renewable and green energy footprint, targeting 22,000 Mw of solar capacity by 2027-28.

 

The government has lined up solar projects worth ₹ 35,000 crore, including seven solar parks with a combined capacity of 3,700 Mw.

 

These solar power projects will be set up by leading renewable energy companies including National Hydroelectric Power Corporation (NHPC), Tehri Hydro Development Corporation Limited (THDC), Avaada Group.

 

Of the targeted solar energy capacity, around 8,000 Mw have either already been commissioned in UP or in the process of being developed.