Coal India Limited and Sarus Infrastructures have emerged as winners in a major battery energy storage auction conducted by Telangana Power Generation Corporation. The auction was aimed at developing 375 MW/1500 MWh of standalone battery energy storage systems (BESS) across Telangana, marking an important step toward improving grid stability and supporting renewable energy integration in India.
As per the results, both companies have been awarded equal capacities of 187.5 MW / 750 MWh each. The projects will be developed at two key substations in the state. Coal India will set up its battery system at the Choutuppal substation, while Sarus Infrastructures will establish its facility at the Maheswaram substation.
The estimated investment for these projects is significant. Coal India’s project is valued at around ₹1,057 crore, while Sarus Infrastructures’ project is estimated at approximately ₹1,015 crore. These large-scale storage systems are expected to play a crucial role in balancing electricity demand and supply, especially during peak hours.
Under the agreement, both developers are required to commission their projects within 18 months from the signing of the purchase contract. The systems must deliver at least one full charge-discharge cycle of four hours daily and maintain a minimum annual availability of 95%.
To support the projects financially, the government has provided viability gap funding (VGF) of ₹18 lakh per MWh. This funding will be released in three stages, linked to the achievement of key project milestones.
For Coal India, this project reflects a strategic shift toward clean energy and diversification beyond coal mining. Overall, the initiative is part of India’s broader push to strengthen renewable energy infrastructure and ensure a reliable and sustainable power supply.
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