Author: PPD Team Date: 15/03/2025
In Telangana, a major solar initiative is unfolding across multiple locations of the Singareni Collieries Company Limited (SCCL). The 300 MW solar photovoltaic (PV) power project, developed on a Build, Own, and Operate (BOO) basis, is set to power SCCL’s operations. The Solar Energy Corporation of India (SECI) is overseeing the project as the project management consultant (PMC).
Phase I: The First Steps Toward Solar Expansion
In 2018, SCCL approved the detailed project report (DPR) for nine solar projects. The first phase, totaling 129 MW, was built across Ramagundam (50 MW), Manuguru (30 MW), Pegadapally (10 MW), and Yellandu (39 MW). Bharat Heavy Electricals Limited (BHEL) secured the engineering, procurement, and construction (EPC) contract for Rs 5.65 billion. The capacity of Yellandu was revised from 70 MW to 39 MW.
By January 2020, the commissioning of solar plants had begun, with 5 MW at Pegadapally going live. Over the next two years, projects at Manuguru, Ramagundam, and Yellandu were progressively commissioned, completing Phase I by December 2021.
Phase II: Scaling Up the Vision
Phase II involved 90 MW of solar capacity spread across Bhupalpally (10 MW), Mandamarri Bellampalli (43 MW), and Kothagudem (37 MW). SCCL secured a viability gap funding (VGF) of Rs 6 million per MW under the Central Public Sector Undertaking (CPSU) scheme. Adani Infra was awarded the contract for Rs 4.06 billion.
Commissioning started in April 2021, with Mandamarri (28 MW) and Bhupalpally (10 MW) coming online. In September 2021, the last unit, 37 MW at Kothagudem, was inaugurated, marking the completion of Phase II.
Phase III: Advanced Solar Innovations
The final phase, totaling 81 MW, introduced floating solar projects alongside ground-mounted ones. Sites included Chennur (11 MW), Kothagudem (22.5 MW), Ramagundam OC 1 OB Dump (22 MW), Dorli OC 1 OB Dump (10.5 MW), and floating solar units at STPP Storage Reservoir (10 MW) and Dorli OC 2 Void (5 MW). SCCL secured VGF support of Rs 6.8 million per MW.
In 2020, Adani Infra and Novus Green Energy Systems won contracts for Phase III, but Novus Green could not complete the 10 MW floating project, leading to its cancellation.
The commissioning of this phase began in January 2023 with the 5 MW Dorli OC 2 Void project. By 2024, additional plants at Kothagudem, Chennur, and Ramavaram were operational. The last 1.1 MW at Chennur was commissioned in August 2024.
Project Financing
The entire project costs Rs 13.61 billion, with Rs 4.95 billion funded through SCCL’s internal resources and Rs 8.66 billion secured as a loan from the State Bank of India (SBI). The debt-equity ratio stands at 70:30, with SBI offering the loan at an interest rate of 7.34% per annum.
Currently, 245.5 MW of capacity has been commissioned, while 44.5 MW remains under construction, including the Ramagundam OC 1-OB Dump project (22 MW) and Kothagudem (12 MW). Meanwhile, a 10 MW floating solar project at the STPP Reservoir is in the bidding phase.
This solar initiative makes SCCL one of India’s leading coal companies transitioning towards sustainability.
Featured photograph is for representation only.