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Tata Power to Add 1,600 MW Coal Capacity at Prayagraj After Six-Year Hiatus

In a notable strategic shift, Tata Power has announced plans to expand its coal-based generation capacity by 1,600 MW at its Prayagraj plant in Uttar Pradesh. This marks the company’s first move to scale up coal power since 2018, signaling a recalibrated approach in the face of India’s evolving energy landscape.

The decision comes amid a national energy scenario where soaring power demand, coupled with delays in renewable energy deployment, has compelled utilities and the government to revisit thermal power expansion. The central government has already projected an addition of 80 GW of coal-fired capacity by 2031–32, reinforcing the focus on energy security.

Tata Power, while committed to India’s clean energy goals, appears to be balancing its priorities. The company is simultaneously pushing forward with a robust $9 billion investment in green energy and is targeting over 20 GW of renewable capacity by 2030. This dual-track strategy reflects the complex reality of maintaining reliable power supply while pursuing a low-carbon future.

As India marches toward its 500 GW non-fossil energy target by the end of this decade, Tata Power’s decision underscores the ongoing challenge of managing the energy transition without compromising on grid stability and industrial growth.