India's next gen coal-fired power projects in limbo; Approvals pending over a year after Budget announcement
Ministry of Heavy Industries
(MHI) before the
Parliamentary Committee on Public Undertakings
(CoPU), follow-up meetings were held at NITI Aayog in August and December 2024 subsequent to the budget announcement.
'A draft Public Investment Board (PIB) note for approval was also submitted to the Power Ministry by
NTPC
with project details in March 2025,' MHI said. But there has been no progress since.
'The final approval from the Government is still awaited which is crucial for the project to move forward,' the Parliamentary Committee said.
The AUSC project aims to replace aging subcritical coal plants with more efficient and environmentally friendly alternatives. The technology, developed jointly by
BHEL
, NTPC, and the Indira Gandhi Centre for Atomic Research (IGCAR), completed its R&D phase in December 2020.
According to MHI, the proposed Technology Demonstration Plant (TDP) is to be located at NTPC Korba in Chhattisgarh and implemented by NTPC BHEL Power Projects Private Limited (NBPPL).
Expressing concerns over the delay, The CoPU expressed concern over the delay, calling the ministry's response 'interim' and urging the Ministry of Heavy Industries to 'vigorously follow up' with the Ministry of Power and other relevant departments to secure final approval.
The committee emphasized the importance of the AUSC project in improving the efficiency and environmental performance of India's thermal power fleet, especially as over 130 GW of coal-based capacity is expected to cross 30 years of age by 2047.
The report also highlighted broader issues facing BHEL, including procurement restrictions, delays in board appointments, and gender representation in the workforce. The committee reiterated its call for time-bound action and greater
inter-ministerial coordination
to ensure strategic projects like AUSC do not languish despite policy support.
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