**Executive Summary**
This document is the official response to Unstarred Question No. 714 in the Lok Sabha, answered on December 4, 2025, regarding the Telangana Super Thermal Power Project. It provides details on the Rs. 29,344.85 crore investment approved by the NTPC Board in November 2024 for Phase-II of the project, the timeline for construction and commissioning, the employment generation plan, coal sourcing strategy, and measures to ensure project viability. NTPC Ltd. is pursuing Power Purchase Agreements with Telangana and other State Governments.
**Key Points / Main Content**
* **Project Investment and Approval:**
* NTPC Board approved Rs. 29,344.85 crore investment for Telangana Super Thermal Power Project Phase-II (3 x 800 MW) in November 2024.
* Investment details by package are listed in the Annexure.
* **Construction Timeline:**
* NTPC Ltd. has set a 64-month timeline for construction, commencement, and commissioning of Phase-II from the award of the Main Plant package.
* The Main Plant award is contingent upon the signing of Power Purchase Agreements (PPAs).
* NTPC Ltd. is actively pursuing PPA signing with the Government of Telangana and other State Governments.
* **Employment Generation:**
* The contractor will engage unskilled and semi-skilled manpower for construction-related activities, giving preference to local residents.
* NTPC-Ramagundam and Telangana have initiated skill development internship programs to improve employability of local candidates.
* Indirect employment opportunities will be generated through outsourced services during the operational phase.
* **Coal Sourcing:**
* The Standing Linkage Committee (Long-Term) has recommended long-term coal linkage from Singareni Collieries Company Limited (SCCL) for the additional 2400 MW capacity under the SHAKTI Policy.
* SCCL has assured coal supply at a price matching the landed cost of South-Eastern Coalfields Ltd. (SECL).
* **Project Viability:**
* SCCL has assured coal supply to Telangana Super Thermal Power Project Phase-II at price matching the landed cost of South-Eastern Coalfields Ltd. (SECL), a subsidiary of Coal India Ltd. (CIL).
**Impact Analysis**
**Stakeholder:** Local Residents of Peddapalli Lok Sabha Constituency
* **Impact:** Increased employment opportunities during construction and operation phases, skill development initiatives, and socio-economic development of the region.
* **Action Required:** Participate in employment opportunities and skill development programs offered by NTPC and Telangana.
**Stakeholder:** Government of Telangana and Other State Governments
* **Impact:** Potential power purchase agreements to meet energy demands.
* **Action Required:** Review and sign Power Purchase Agreements (PPAs) with NTPC Ltd.
**Stakeholder:** Andhra Pradesh DISCOMs
* **Impact:** Coal Pricing now aligned to SECL benchmarks and the exemption from Flue Gas Desulphurisation (FGD) requirement, the overall tariff for Telangana Super Thermal Power Project Phase-II has become significantly more competitive.
* **Action Required:** Re-evaluate the viability and competitiveness of the project in light of new cost parameters and coal price assurances.
Key Entities Referenced
Telangana Super Thermal Power Project Phase-II: A power project in Telangana with a capacity of 3 x 800 MW, located at Ramagundam in the Peddapalli district.
NTPC Ltd.: National Thermal Power Corporation, a CPSE under the Ministry of Power, responsible for the construction and commissioning of the power project.
Ministry of Power: The central government ministry overseeing the Telangana Super Thermal Power Project Phase-II.
Peddapalli: The district in Telangana where the power project is located; relevant for employment generation plans and coal sourcing.
SHAKTI Policy: A policy related to coal linkage under which the Telangana Super Thermal Power Project Stage-II will receive long-term coal linkage.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.714
ANSWERED ON 04.12.2025
TELANGANA SUPER THERMAL POWER PROJECT
714. SHRI VAMSI KRISHNA GADDAM:
Will the Minister of POWER
be pleased to state:
(a) the details of the Rs. 29,344.85 crore investment approved by the NTPC Board in
November 2024 for the Telangana Super Thermal Power Project Phase-II (3 × 800 MW) at
Ramagundam in the Peddapalli district;
(b) the timeline set by the Union Government for the construction, commencement and
commissioning of three 800 MW units under Phase-II;
(c) the employment generation plan for residents of the Peddapalli Lok Sabha
Constituency during the construction and operational phases of this project;
(d) the coal sourcing strategy for the additional 2400 MW capacity particularly the
percentage allocation from mines in the Peddapalli district; and
(e) the measures taken by the Union Government to ensure project viability despite power
cost concerns raised during negotiations with the State Government of Telangana?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : NTPC Ltd. is a Maharatna CPSE under administrative control of Ministry of Power,
Government of India and its Board has approved investment of Rs. 29,344.85 Crore in
November, 2024 for Telangana Super Thermal Power Project Phase-II (3 x 800 MW) at
Ramagundam in the Peddapalli-district of Telangana. The details of approved
investment are given at Annexure.
(b): NTPC Ltd. has set the timeline i.e. sixty-four (64) months for the construction,
commencement, and commissioning of Phase-II (3 x 800 MW) from the award of Main
Plant package. Main Plant award is subject to signing of Power Purchase Agreement (PPA)
by beneficiaries. NTPC Ltd. is continuously pursuing with Government of Telangana along
with other State Governments for signing of Power Purchase Agreements.
(c): After award of the contract, the contractor will engage unskilled and semi-skilled
manpower for construction activities like civil works, material handling, housekeeping
and other construction-related activities by giving preference to local residents. NTPC-
Ramagundam and Telangana has also initiated skill development under internship
programmes to improve the employability of local candidates for project-related roles.
…….2.- 2 -
In the operational phase, indirect employment opportunities are expected to be
generated for local residents through outsourced services in areas such as plant
maintenance, township operations, transportation, housekeeping, and other support
services with continued preference for local engagement.
NTPC-Ramagundam and Telangana projects remain committed to support local
employment and contribute to the socio-economic development of the Peddapalli region.
(d) to (e): The Standing Linkage Committee (Long-Term) [SLC (LT)] of the Ministry of
Coal, Government of India, has recommended the grant of long-term coal linkage from
Singareni Collieries Company Limited (SCCL) to NTPC Ltd. for the additional 2400 MW
capacity of Telangana Super Thermal Power Project (STPP) Stage-II, consisting of 3 ×
800 MW units, under Para B (i) of the SHAKTI Policy.
However, Andhra Pradesh DISCOMs had expressed concerns regarding the
viability of the indicative Energy Charge Rate (ECR) primarily due to the higher cost of
coal sourced from SCCL. The issue was again taken up with SCCL and SCCL has
categorically assured coal supply to Telangana Super Thermal Power Project Phase-II
at price matching the landed cost of South-Eastern Coalfields Ltd. (SECL), a subsidiary
of Coal India Ltd. (CIL). This assurance fully addresses the apprehensions earlier raised
by AP DISCOMs regarding fuel cost and projected variable charges. With coal pricing
now aligned to SECL benchmarks and the exemption from Flue Gas Desulphurisation
(FGD) requirement, the overall tariff for Telangana Super Thermal Power Project Phase-
II has become significantly more competitive. Based on this development, NTPC Ltd. is
once again taking up with various DISCOMs for PPA signing.
**********ANNEXURE
ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 714
ANSWERED IN THE LOK SABHA ON 04.12.2025
*************
The Details of Approved Investment for Telangana Super Thermal Power Project Phase-
II (3 x 800 MW) at Ramagundam in Peddapalli district of Telangana:
Sl. No. Packages Cost including GST
( Rs. in Crore)
1 Boiler Turbine Generator (BTG) Package with 15,992.20
Air Cooled Condenser
2 Balance of Plant (BOP) Package 7,247.55
3 Railway Siding 771.84
4 Land 20.00
5 Ash Dyke 150.00
6 Infrastructure 265.00
7 Miscellaneous- Advance Expenditure & site 157.71
enabling work, Corporate Social
Responsibility (CSR)/ Community
Development (CD) work, Green Belt & Proof
Checking
8 Contingency 245.84
9 Project Management Cost 869.76
10 Pre-Commissioning 596.40
11 Interest During Construction & Financing 3,028.54
Charges
Total Project Cost 29,344.85
***********