₹15K-cr project of NTPC may be axed

MoU on Chhabra plant expansion faces cancellation

- SAURAV ANAND

A PROPOSED ₹15,000-CRORE expansion of Rajasthan’s Chhabra Thermal Power Plant by state-run NTPC is unlikely to move forward, with regulatory records indicating that the memorandum of understanding (MoU) signed between NTPC and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) has been reviewed and is “likely to be cancelled due to persisting critical issues”.

The development casts uncertainty over plans to add 1,320 MW of coal-based capacity — through two units of 660 MW each — at one of Rajasthan’s key thermal power hubs. Queries sent to NTPC seeking comment on the status of the Chhabra MoU and the issues flagged in the regulatory review did not receive a response till the time of going to press.

THE STATUS OF the Chhabra expansion came up during deliberations of the Energy Assessment Committee (EAC) in August 2025, when the committee reviewed whether projects backed only by MoUs with central public sector undertakings (CPSUs) could be counted as assured capacity under resource adequacy assessments.

According to the records reviewed by FE, RVUNL informed the committee that MoU-based CPSU projects remain at an early stage of development and are affected by unresolved regulatory approvals, fuel transfer arrangements and coal logistics, making their execution uncertain.