NTPC JV for Chhabra plant not properly thought through: Min

Jaipur: State energy minister Heeralal Nagar Thursday acknowledged that the Sept 2024 decision to sign a joint venture agreement with NTPC for the Chhabra thermal power plant was “not properly thought through”, a move that was later reversed by the energy department.

Under the agreement, NTPC was to take over complete operation and management of Rajasthan Vidyut Utpadan Nigam Ltd’s (RVUNL) 2,320MW thermal plant in Baran district, with the aim of improving efficiency and output.

Addressing a media briefing, Nagar said the decision was taken at a time when plant load factors across RVUNL’s thermal plants were under pressure. He, however, highlighted a recent turnaround, noting that generation efficiency has improved to 82% in 2025-26 from 78% the previous year and 84.34% over the past two months.

“The agreement was made when generation levels were lower. We subsequently cancelled the JV and focused on improving performance on our own,” the minister said.

On the ‘contentious’ tender for procurement of 3,200MW of coal-based power, Nagar stopped short of offering clarity on whether the state requires additional capacity.

He said the electricity regulator has left it to the govt to assess future demand and take a call accordingly. “We need to plan ahead, and that is why 3,200MW may be required,” he added.

However, the Centre’s resource adequacy report indicates that Rajasthan already has sufficient projects in the pipeline to meet its power demand until 2035-36, raising questions over the necessity of fresh thermal capacity addition.

The minister also pointed to a growing push towards renewables and storage. He said the Centre is expected to allocate 5,000MW of solar capacity to Rajasthan under the Kusum 2.0 scheme, which will be backed by battery storage to help meet peak demand. Kusum projects are aimed at solarising agricultural connections, which account for nearly 40% of the state’s electricity consumption.

Outlining plans for energy storage, Nagar said RVUNL is executing battery energy storage system (BESS) projects totalling 6,000MWh. These will be developed in phases with a target of Sept 2027, although 1,000MWh is expected to become operational within the next three months.

Separately, Rajasthan Renewable Energy Corporation is also developing 6,000MWh of storage capacity alongside 2,450MW of solar generation at the under-construction Pugal solar park. “The tendering process for this is currently underway,” he added.