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NTPC’s Rs15,000-Crore Chhabra Expansion Project Faces Possible Cancellation

A proposed Rs15,000-crore expansion of the Chhabra Thermal Power Plant in Rajasthan by NTPC may not move ahead, with regulatory records indicating that the memorandum of understanding (MoU) between NTPC and Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) is under review and likely to be cancelled due to unresolved critical issues.

The development puts a question mark over NTPC’s plan to add 1,320 MW of coal-based capacity at the Chhabra facility through two additional units of 660 MW each. The project was intended to expand one of Rajasthan’s major thermal power stations.

Regulatory Review Raises Concerns

According to regulatory filings, the MoU governing the proposed expansion has been re-examined, with the assessment pointing to persistent challenges that could prevent the project from progressing. However, the specific nature of the issues flagged in the review has not been made public.

The Chhabra Thermal Power Plant currently operates six generating units with a combined installed capacity of 2,320 MW.

Awaiting Official Clarification

NTPC was approached for comments regarding the status of the MoU and the concerns highlighted in the regulatory review. However, the company did not respond to queries until the time of publication.

If the MoU is formally withdrawn, it would mark a significant setback for plans to expand coal-based generation capacity at Chhabra, amid a broader shift in India’s power sector toward cleaner energy sources.