LUCKNOW, June 18 -- At a time when Uttar Pradesh is under pressure to rapidly expand electricity generation capacity to meet rising demand, the state government's ambitious plan to set up two new thermal power projects of 1,600 mw each in a joint venture with the NTPC has run into multiple hurdles, delaying progress beyond the initial agreement stage. The projects, Obra-D (1,600 mw) and Anpara-E (1,600 mw) in Sonbhadra district, were approved by the state cabinet in mid-2023 and expected to significantly strengthen UP's baseload power generation capacity over the coming years. Subsequently, the state-run UP Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) signed a memorandum of understanding with the NTPC for implementation of the projects through joint venture companies. However, nearly three years on, little progress has been made on the ground. Officials attributed the delay mainly to unresolved coal supply arrangements and financial constraints linked to project execution. "The biggest bottleneck is coal linkage. The coal source that Coal India Ltd (CIL) has offered is expensive. We want the rearrangement of coal allocation from a cheaper source," said UPRVUNL director (projects and commercial) SK Dutta. A senior energy department official indicated availability of only around 50% of the required coal quantity, and that too, from a relatively expensive source, raising concerns over long-term generation costs and viability of the projects. Uttar Pradesh, he said, wanted full coal linkage and from a more economical source to keep future power tariffs under control. "The state has conveyed to Coal India that merely partial coal allocation would not support financial closure and execution of projects of this scale," he said. To resolve the issue, chief secretary SP Goyal recently chaired a high-level meeting attended by officials of Coal India, NTPC and the state energy department. "During the meeting, Coal India was asked to explore reallocation or restructuring of coal supply, including use of its flexi-utilisation mechanism, to ensure adequate and affordable fuel availability," the official said. Another issue affecting progress relates to NTPC's investment ceiling. Officials said NTPC's board had approved an investment limit of around Rs 5,000 crore, which was considered insufficient for participation in the proposed joint venture projects. The corporation has reportedly approached the Centre seeking enhancement of the investment cap. The state government is understood to have asked NTPC to actively pursue the proposal so that financial approvals do not become another obstacle. Apart from coal and funding concerns, officials anticipate land and rehabilitation challenges once physical work begins at the project sites. "Over the years, settlements and habitation have emerged in and around parts of the proposed project areas, particularly at older thermal power locations. These families would need to be rehabilitated and relocated before construction activities can start," the energy department official said. According to him, preliminary planning for rehabilitation is being worked out, though he acknowledged that the process may require careful handling to avoid delays. Officials said that given the multiple issues involved, it had been decided to hold further discussions involving senior officials of the central government, Coal India and NTPC to arrive at a coordinated solution and revive momentum on the projects. The proposed 3,200 mw capacity addition is considered strategically important for Uttar Pradesh, where electricity demand has been rising steadily due to rapid urbanisation, industrial growth and expanding rural electrification. Despite becoming one of the country's largest power consumers, the state continues to depend substantially on central allocation and purchased power to bridge demand-supply gaps....