Coal India Issues EPC Tender for 187.50 MW/750 MWh Battery Storage Project in Telangana

Underlining its aggressive pivot from coal extraction to clean energy dispatch, Coal India Limited (CIL) has issued a Notice Inviting Tender (NIT) for the Engineering, Procurement, and Construction (EPC) of a 187.50 MW / 750 MWh Battery Energy Storage System (BESS) in Choutuppal, Telangana. This utility-scale project, representing a significant technical undertaking for the state-run miner, is designed to provide grid stability and facilitate the seamless integration of renewable energy into the state’s transmission network.

Strategic Context: From Auction Winner to Project Execution

This tender is the operationalization of a major regulatory win for CIL. In March 2026, the company secured the capacity from the Telangana Power Generation Corporation (TGGENCO) through a competitive auction at a specific tariff of ₹3.14 lakh/MW/month. By issuing this EPC tender (Reference No: CIL/HQ/SOLAR/BESS/TGGENCO/EPC/NIT/01), CIL is now moving to build out the capacity it won under a Build, Own, Operate (BOO) model with a 15-year tenure.

The project arrives during a watershed year for the Indian BESS sector. With approximately 92 GWh of projects currently in the national pipeline, this initiative places CIL at the forefront of a 2026 “BESS boom” that is transforming batteries from experimental pilots into bankable grid infrastructure.

Project Scope and Technical Specifications

The estimated project cost is ₹1057.09 crore. The selected contractor will handle the design, engineering, supply, and commissioning of the facility. Key parameters include:

• Total Capacity: 187.50 MW / 750 MWh (4-hour discharge duration).
• Location: Situated at the 400/220 kV Choutuppal Substation, Telangana.
• Operational Blocks: The system must be capable of discharging in discrete blocks of either 60 MW / 240 MWh or 67.5 MW / 270 MWh, as required by the utility.
• Evacuation Infrastructure: Construction of two 220 kV switchyard evacuation bays and connection to the State Transmission Utility (STU) network.
• Timeline: 11 months for completion from the Letter of Award (LOA) or handing over of land.
• Consultancy: Ahasolar Technologies is serving as the Owner’s Engineer-cum-Engineering Consultancy, providing oversight for all EPC activities.

Financial Support and Milestones

The project leverages the Central Government’s Viability Gap Funding (VGF) support, valued at ₹18 lakh/MWh, to ensure commercial viability. Disbursement of this funding is strictly milestone-based:

• 20% at the time of Financial Closure and submission of Bank Guarantee.
• 50% upon achieving the Commercial Operation Date (COD).
• 30% after one year of successful operation post-COD.

Operation, Maintenance, and Performance Guarantees

The tender mandates a 15-year comprehensive O&M period and a matching 15-year Defect Liability Period.

• System Availability: Contractors must guarantee a minimum annual average system availability of 95%.
• Penalty Formula: Shortfalls in availability will be penalized using the formula: (A – B) x C x D x n x 2, where A is guaranteed availability, B is actual availability, C is power capacity, D is capacity charges, and n is the number of months.
• Efficiency Standards: The system must adhere to Round-trip Efficiency (RtE) targets; failure to meet monthly RtE goals will result in additional damages.
• Technical Integrity: The BESS must maintain a C-rate of 0.25. The use of refurbished battery cells is strictly prohibited.
• Make in India: In alignment with domestic manufacturing goals, the Energy Management System (EMS) application software must be developed indigenously within India.

Tender and Bidding Logistics

CIL is utilizing a two-cover bidding process (Technical and Financial) followed by an e-Reverse Auction to determine the L1 bidder. To ensure transparency, Coal India has appointed Independent External Monitors, including Shri O.P. Singh, Shri K.D. Tripathi, and Shri Rakesh Mohan, to oversee the procurement.

Key Tender Deadlines and Financials

Background and Strategic Diversification

This project is a cornerstone of Coal India’s broader strategy to diversify its energy portfolio as it targets ~9.5 GW of renewable energy capacity by 2030. By utilizing reclaimed land and investing in high-efficiency storage, CIL is transitioning toward sustainable mining and environmentally responsible infrastructure. This shift not only supports India’s national climate commitments—specifically the goal of net-zero emissions by 2070—but also ensures CIL remains a dominant player in India’s evolving energy security landscape.

The official tender link for the 187.50 MW/750 MWh Battery Energy Storage System (BESS) project in Telangana, as listed on the eProcurement System of Coal India Limited, is:

Official Tender Link

Tender Identification Details

To ensure users can find the tender if the direct link expires, you can also provide the following official identifiers found in the sources:

• Tender ID: 2026_CILHQ_362656_1
• Tender Reference Number: CIL/HQ/SOLAR/BESS/TGGENCO/EPC/NIT/185 (or NIT/01)
• Portal: https://coalindiatenders.nic.in/

Important Bidding Dates

For your article, it is important to note the key deadlines associated with this link:

• Bid Submission Closing Date: 19 August 2026, at 5:00 PM.
• Technical Bid Opening Date: 20 August 2026, at 11:00 AM.