Mahanadi Coalfields (MCL) is considering expanding its next thermal power plant in Odisha's Sundargarh area. In the second phase, MCL plans to add 2,400 MW, bringing the unit's total capacity to 4,000 MW.

The 1,600 MW initial phase of the project is expected to begin construction in the upcoming fiscal year and be completed by 2028.

The land for the project was earlier allotted for the Bedabahal ultra-mega power project of 4,000 MW, which was eventually scrapped. MCL then acquired the land from PFC Consulting.

The Ministry of Power has enhanced its projection of thermal capacity requirement and addition to 80 GW by 2031-32.

The ministry has also been promoting large-scale diversification, and has advised all subsidiaries to explore setting up new pithead thermal power plants.