Coal India Limited (CIL) has invited bids from eligible financial institutions for a ₹713.40 crore rupee term loan to finance its 187.5 MW/750 MWh standalone Battery Energy Storage System (BESS) project at Choutuppal, Telangana. The financing tender was e-published on August 20, 2026, through Coal India’s official e-procurement portal.
The tender, issued by Coal India Limited, Headquarters, Kolkata, through its Finance Division, is titled “Borrowing of Rupee Term Loan Amounting to 713.40 Crores for 187.5 MW / 750 MWh Standalone Battery Energy Storage System (BESS) Project at Choutuppal, Telangana.” It carries tender reference Coal India Limited – Tender No. CIL/RTL/E-Tender/2026-27/001
Financing for Choutuppal BESS
The proposed storage facility has a rated power capacity of 187.5 MW and an energy storage capacity of 750 MWh, representing a four-hour storage configuration. The project is being developed as a standalone BESS at Choutuppal in Telangana.
The latest tender is specifically for arranging the debt required for the project. Coal India has set the estimated capital cost at ₹891.75 crore, excluding operation and maintenance expenses, according to details of the financing tender. The project is structured with an 80:20 debt-to-equity ratio, with the ₹713.40 crore term loan forming the debt component.
The scheduled Commercial Operation Date (COD) is October 29, 2027, while the project is planned with an operational life of 15 years.
Loan Structure and Repayment
Under the financing tender, the proposed rupee term loan will have a 10-year tenure without a moratorium. Principal repayment is scheduled to begin after the project achieves COD and will be made through 40 equal quarterly instalments.
Interest payments will commence from the month following the first disbursement of the loan. Financial institutions participating in the tender can quote interest rates against permitted internal or external reference benchmarks. Coal India will evaluate the financial offers based on the lowest net interest rate quoted in accordance with the tender conditions.
The financing arrangement will be secured through a Deed of Hypothecation covering the project’s non-current assets, including plant and machinery, while land is excluded from the security arrangement. The tender does not require a conventional cash Performance Bank Guarantee for the loan.
Coal India has kept the Earnest Money Deposit and tender processing fee at nil for the financing procurement.
Eligibility of Financial Institutions
The financing tender is open to Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and financial institutions regulated under an Act of Parliament.
Participating institutions are required to have a minimum net worth of ₹500 crore as of March 31, 2026. The tender does not permit bidding through a consortium.
Coal India has also specified the schedule for the financing procurement. The deadline for seeking clarifications is August 27, 2026, while the pre-bid conference is scheduled for August 26, 2026. Online bids can be submitted until September 10, 2026, at 5:00 PM. The techno-commercial bids are scheduled to be opened on September 11, 2026, at 11:00 AM. The opening date for the price bids will be communicated separately to bidders that qualify at the techno-commercial stage.
Separate EPC Tender for the Project
The financing process follows a separate procurement initiated by Coal India for development of the storage facility itself. The company’s official e-procurement portal lists an EPC tender titled “Development of 187.50MW/750 MWh Battery Energy Storage System (BESS) system through complete EPC mode at Choutuppal, Telangana along with 15 years of Comprehensive Operation and Maintenance (O and M).”
That EPC tender was e-published on July 31, 2026, with tender reference CIL/HQ/SOLAR/BESS/TGGENCO/EPC/NIT/01, dated July 29, 2026, and Tender ID 2026_CILHQ_362656_1. The tender provides for development of the complete storage system along with 15 years of comprehensive operation and maintenance.
The separate EPC and financing procurements therefore cover two different requirements of the same Choutuppal project. The EPC process addresses development and long-term O&M of the facility, while the latest tender concerns arranging the debt required for project financing.
Project Development Timeline
With the financing tender published on August 20, Coal India has moved forward with the financial procurement for the Telangana storage project. The financing process will progress through clarification, pre-bid and bid-evaluation stages before the selection of the financial institution or institutions meeting the tender requirements.
The project is targeted for commercial operation on October 29, 2027, with the financing structured around a 10-year loan tenure and repayment beginning after COD. The planned project life is 15 years.
The Choutuppal development consequently brings together a ₹891.75 crore estimated capital cost, an 80:20 debt-to-equity structure, a ₹713.40 crore term loan requirement, and a separate EPC procurement covering the 187.5 MW/750 MWh BESS and 15 years of comprehensive O&M.
The latest financing tender provides the next major procurement milestone for the project, with bids due by September 10, 2026, followed by the scheduled opening of techno-commercial bids on September 11. Coal India’s official tender records identify the Choutuppal facility as one of the company’s ongoing large-scale energy-storage developments in Telangana.
Official Source:
Official Tender Document:Coal India Limited – Tender No. CIL/RTL/E-Tender/2026-27/001
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