The West Bengal government is set to launch a global tender, post-Durga Puja, to establish a 660 MW supercritical thermal power plant at Durgapur. The proposed project follows a Public-Private Partnership (PPP) model and awaits approval from the West Bengal Electricity Regulatory Commission (WBERC). The state will provide unused land owned by the Durgapur Projects Limited (DPL) and key common infrastructure like ash ponds and coal-handling facilities.
Coal supply will be arranged via Coal India Limited (CIL), while the selected private bidder will build, own, and operate the plant under a tariff-based revenue-sharing model. The West Bengal State Electricity Distribution Company Limited (WBSEDCL) will purchase the generated power under a long-term Power Purchase Agreement (PPA).
Investment and the Power Landscape of Bengal
Although exact costs haven’t been disclosed, industry estimates place the investment between ₹5,280 crore and ₹6,600 crore, based on typical costs of ₹8-10 crore per MW for greenfield supercritical plants. West Bengal currently boasts around 6,000 MW of generation capacity, including 4,250 MW from the state utility WBPDCL, 750 MW from DPL, roughly 1,000 MW from hydro and solar assets via WBSEDCL, and an additional 1,000 MW from central sector utilities like NTPC, NHPC, and DVC. To meet growing electricity demand, the state also plans new units at Bakreswar (2×800 MW) and Santaldih (660 MW), emphasizing PPP for private sector involvement.
A Coordinated Push for Modernization and Sustainability
Late 2024 saw approval for a similar 660 MW supercritical plant at Sagardighi, alongside moves to modernize existing thermal stations at Sagardighi, Bandel, and Kolaghat. The broader energy strategy includes renewable projects—solar farms and a 1,000 MW hydroelectric project—to diversify the state’s energy mix. The Durgapur plant will be developed under a Design-Build-Finance-Own-Operate (DBFOO) model, with environmental clearances and coal linkages aligned with the SHAKTI policy.
Recently, Chief Minister Mamata Banerjee confirmed ongoing bids for the Durgapur and Bakreswar units, with the Santaldih unit under construction. Development of the Deucha-Pachami coal mine is expected to reduce tariffs over time.
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Some Notable Energy Focused Initiatives
West Bengal is aggressively expanding its thermal power capacity to meet rising demand. One of the flagship projects is a 1,600 MW ultra-supercritical thermal power plant in Salboni, Paschim Medinipur, developed by JSW Energy Ltd with a ₹16,000 crore investment under a Design-Build-Finance-Own-Operate (DBFOO) model. The plan includes two 800 MW units, with the first expected operational by 2029.
The Deucha-Pachami coal project—one of the world’s largest coal mining endeavors—is a key pillar for West Bengal’s energy security. Spanning over 326 acres with reserves estimated at over 1.2 billion tonnes of coal, the site is transitioning towards underground mining, with pilot operations progressing after environmental approvals
The state currently hosts about 2.10 GW of renewable installations, including solar and mini/micro hydel projects. Noteworthy initiatives include a 112.5 MW solar park at Garbeta, supported by foreign investment, while a 1,000 MW pumped storage hydro project at Panchet Hill (a joint venture between Damodar Valley Corporation and the state) aims to enhance grid stability and support renewable integration.
Why This Matters
- Capacity Boost: Adds 660 MW—significant given the current power gap.
- Private Investment: The PPP and DBFOO models attract private capital and expertise.
- Energy Security: Supercritical tech enhances efficiency and reduces coal use.
- Comprehensive Planning: Aligns with other large projects and renewable initiatives.
- Consumer Benefit: Coal mine expansion and plant modernization aim to reduce power tariffs long-term.
Next Steps
WBERC approval is the immediate requirement before tendering begins, expected after Durga Puja. Project timelines will depend on winning bids and regulatory clearances. Stakeholders and observers will be tracking contract awards and construction milestones closely.
