Maharashtra Government Approves Rs 39.20 Crore Equity for Koradi Thermal Power Project
The Maharashtra state government has officially approved the release of Rs 39.20 crore as part of its equity contribution to the ongoing 2x660 MW supercritical thermal power project at the Koradi Thermal Power Station. This move provides a significant fresh push to the ambitious energy initiative, which is crucial for bolstering the state's power generation capabilities.
Project Overview and Financial Structure
The project, being executed by the Maharashtra State Power Generation Company Limited (Mahagenco), received administrative approval in December 2023 with a total estimated cost of Rs 10,625 crore. According to the financial structure, 80% of the project cost, amounting to Rs 8,500 crore, is being mobilized through loans from financial institutions such as the Power Finance Corporation (PFC), Rural Electrification Corporation (REC), and a consortium of banks. The remaining 20%, which is Rs 2,125 crore, is to be infused by the state government as equity in a phased manner.
Strategic Importance of the Koradi Expansion
The Koradi thermal power plant expansion project is considered a key component of Maharashtra's strategy to strengthen its base-load power capacity through high-efficiency supercritical technology. This technology is known for its improved efficiency and reduced environmental impact compared to conventional thermal power plants. Once completed, the project is expected to significantly enhance electricity generation capacity in the Vidarbha region, addressing the state's growing energy demand and supporting economic development.
Financial Progress and Recent Developments
During the financial year 2025-26, expenditure on the project reached Rs 1,723 crore, with Mahagenco contributing the majority share. However, against the government's committed portion, only Rs 56 crore was provisioned in the budget for the year. Out of this allocation, the Finance Department has permitted the utilization of 70% of the earmarked funds, paving the way for the latest tranche of Rs 39.20 crore to be released.
The funds will be transferred directly to Mahagenco through the Pay and Accounts Office in Mumbai via cheque or electronic transfer. The government has directed that the sanctioned amount be used strictly for the purpose it was approved for, under the designated budget head for capital investment in thermal power projects.
Official Approval and Transparency
The resolution was issued following concurrence from the Finance Department and has been uploaded on the official state government portal, ensuring transparency and accessibility for stakeholders. This step underscores the government's commitment to advancing critical infrastructure projects while maintaining fiscal discipline.
In summary, the approval of Rs 39.20 crore equity marks a pivotal moment in the Koradi thermal power project, reinforcing Maharashtra's efforts to meet future energy needs through sustainable and efficient power generation solutions.
