Tamil Nadu Power Generation Corporation Ltd (TNPGCL) is advancing towards acquiring its own colliery to meet the growing demand for domestic coal. TNPGCL is set to appoint a consultant for the development of the Sakhigopal-B Kakurhi coal block in Odisha’s Angul district, which was won by the corporation in a 2024 auction.

The coal block, spread across 6.53 sq km, contains 421.44 million metric tonnes of G11 grade coal. The consultant will assist in selecting an exploration agency and finalizing a bidder to mine and transport coal to TNPGCL’s thermal plants.

The consultant will review geo-mining data, geological reports, and identify additional studies such as drilling and geophysical investigations. They will also manage the process of obtaining environmental and forest clearances.

Currently, TNPGCL's thermal plants, with a total capacity of 4,320 MW, require 22.34 million tonnes of coal annually. As new plants like Udangudi and Ennore SEZ are completed, coal demand is expected to rise by 30%.

In 2016, Tangedco, TNPGCL’s predecessor, had won the Chandrabila Coal Block in Odisha. However, mining plans were halted due to the proximity to a tiger corridor, leading to the cancellation of the project in 2023.