UP Cabinet clears coal funding and floating solar project
Author: PPD Team Date: March 25, 2026
The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, approved 35 proposals last week. These include a 20 MW floating solar plant in Gorakhpur and Rs 2,242.90 crore for coal mine development linked to the Ghatampur Thermal Power Project.
The allocation of Rs 2,242.90 crore supports coal mine development for the Ghatampur Thermal Power Project (3×660 MW), being developed by Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) and NLC India Limited (NLC). The funding is intended to secure fuel supply for the project’s capacity addition.
Coal capacity remains critical to resource adequacy
According to the Central Electricity Authority (CEA)’s Resource Adequacy (RA) Report, additional coal-based capacity beyond current plans will be required from 2026-27 onwards. The report estimates around 5,000 MW of unplanned coal contracts in 2026-27, increasing to approximately 10,800 MW by 2033-34.
Solar expansion to dominate capacity addition
The CEA’s RA report also indicates a significant scale-up in solar capacity for Uttar Pradesh. To meet its Renewable Purchase Obligation (RPO) and address the projected generation gap, the state needs to contract an additional 45,000 MW of solar capacity beyond existing plans by 2033-34.
By 2033-34, solar capacity is projected to reach 48,779 MW, accounting for 33% of total contracted capacity.
The featured photograph is for representation only.
