Coal India Wins 600 MW Solar Plant Order

Coal India Limited (CIL) has received a Letter of Award from Bundelkhand Saur Urja Limited (BSUL) to set up a 600 MW solar power plant at the Jalaun Solar Park in Uttar Pradesh. The project, to be built in two blocks of 300 MW each, will sell power at a tariff of ₹2.73 per kilowatt-hour and carries an estimated project cost of ₹2,831.11 crore .

A Quick Look at Coal India

Coal India is the world’s largest coal mining company, majority-owned by the Indian government. It extracts coal from vast mines across several states and sells it primarily to power plants that generate electricity for Indian homes and to heavy industries like steel and cement. The company also sells coal through online e-auctions. In recent years, it has begun diversifying into renewable energy, commissioning a 100 MW solar plant in Gujarat and forming a subsidiary for green energy projects.

The Order in Detail

The award was announced in a stock exchange filing dated July 1, 2026. The key terms are:

- Awarding Entity: Bundelkhand Saur Urja Limited (BSUL), a domestic entity .
- Project: Setting up a 600 MW solar plant (300 MW × 2) at Jalaun Solar Park, Uttar Pradesh .
- Tariff: ₹2.73 per kilowatt-hour .
- Estimated Project Cost: ₹2,831.11 crore .
- Timeline: 18 months from the signing of the Power Purchase Agreement (PPA) .

Who is Bundelkhand Saur Urja Limited?

BSUL is a joint venture between NHPC Limited, a central government-owned hydropower company, and the Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA). It was incorporated in 2015 specifically to develop solar power projects in Uttar Pradesh. Its portfolio includes the 65 MW Kalpi Solar Power Project, the 45 MW Madhogarh Solar Project, the 100 MW Mirzapur Solar Park, and the 1,200 MW Jalaun Solar Park—of which CIL’s 600 MW is now a part .

The Jalaun Solar Park itself has a total planned capacity of 1,200 MW and is currently in pre-construction status. It is being developed in phases, with CIL’s 600 MW award representing a significant chunk of the overall park .

How This Fits into Coal India’s Diversification

This is not CIL’s first step into solar energy. The company’s investor presentation for FY 2025-26, published in April 2026, shows that a 100 MW solar power plant at Patan, Gujarat, was connected to the grid as of March 31, 2026 . Additionally, CIL incorporated a dedicated renewable energy subsidiary, CIL Rajasthan Akshay Urja Limited, on June 9, 2025, with CIL holding a 74% stake and Rajasthan’s state utility RVUNL holding 26% .

CIL has also previously announced other renewable energy contracts, including a 300 MW solar project in Khavda, Gujarat; an 80 MW/320 MWh battery storage plant in Odisha costing about ₹400 crore; a 187.5 MW/750 MWh battery storage plant in Telangana costing about ₹1,057 crore; and a joint venture for an 875 MW solar plant in Rajasthan backed by a corporate guarantee of ₹3,160 crore .

The 600 MW Jalaun order, therefore, extends a pattern that was already visible .

What to Watch

The 18-month execution clock will start only once the PPA is signed. The ₹2,831.11 crore estimated cost is a material commitment, though it represents a small fraction of CIL’s annual revenue base of over ₹1.68 lakh crore. The tariff of ₹2.73/kWh will determine the project’s long-term revenue stream, but without disclosed margin expectations, the profitability contribution remains unclear. The project’s progress will be a tangible measure of how quickly CIL can scale its renewable energy ambitions beyond the initial 100 MW plant in Gujarat.

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A Quick Look at Coal India

The Order in Detail

Who is Bundelkhand Saur Urja Limited?

How This Fits into Coal India’s Diversification

What to Watch

Sources