The Union government on 28 November, 2024 approved coal allocation to Madhya Pradesh (MP) for establishing thermal power plants with a total installed capacity of 4,100 MW, marking the first such approval in five years.

The decision was made by a high-level inter-departmental committee after MP's energy department submitted a proposal to address the state’s growing power demand. Previously, in 2019, the Centre had cleared coal allocations for fossil fuel-based plants with a combined capacity of 1,360 MW.

The new power plants will attract investments worth Rs 25,000 crore and create substantial direct and indirect employment opportunities, as per MP’s Energy Additional Chief Secretary, Neeraj Mandloi.

Currently, the MP Power Generation Company has an installed thermal energy capacity of 4,570 MW. The new developments aim to bolster the state’s energy infrastructure and meet its rising energy demands effectively.

The coal allocation is seen as a significant step towards self-reliance in energy production, enabling the state to provide affordable and reliable electricity to households, industries, and farmers.