The Madhya Pradesh government will sign three contracts with firms for generating 4,000 MW of thermal energy with a projected investment of Rs 60,000 crore.

After receiving approval from the state government to acquire 4,000 megawatts of electricity from emerging thermal power projects, MP Power Management Company Limited has effectively finished a competitive bidding process based on a DBFOO (Design, Build, Finance, Own & Operate) model for new thermal power plants to be set up in the state, Additional Chief Secretary to Chief Minister and Energy Department, Neeraj Mandloi says.

He mentioned that three successful developers have been chosen for a capacity of 3,200 megawatts in the tender, with an extra 800 megawatt capacity designated under the greenshoe option.

According to Energy Minister Pradyumn Singh Tomar, these initiatives are anticipated to generate direct investments of around Rs 60,000 crore for the state and create roughly 3,000 direct and 5,000 indirect jobs.

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Thus, Hindustan Thermal Projects Limited has received 800 MW, Torrent Power Limited 1,600 MW, and Adani Power Limited 800 MW, along with an extra 800 MW through the greenshoe option, he stated.

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A greenshoe option for a power plant is a clause that enables the power purchaser (typically a government or utility firm) to enhance the originally allocated capacity of the project on the same terms and conditions specified in the initial agreement, as per reports.

The power supply agreements (PSAs) for these capacities have been established with Special Purpose Vehicles (SPVs) created by the chosen developers.

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All the suggested thermal power initiatives will be set up in the Anuppur district of the state.

According to the aforementioned power supply agreements, electricity is anticipated to be accessible starting in 2030.