Coal India and Sarus Infrastructures have won the Telangana Power Generation Corporation (TGGENCO) auction to set up 375 MW/1,500 MWh standalone battery storage systems.

Coal India and Sarus Infrastructures won 187.5 MW/750 MWh each for setting up battery storage systems at the Choutuppal and Maheswaram substations, respectively.

The tender was floated in November 2025.

The project at the Choutuppal substation is estimated to cost ₹10.57 billion (~$112.06 million). The Maheswaram substation project is valued at ₹10.15 billion (~$107.62 million).

Sarus Infrastructures and Coal India must connect the battery storage systems to the Maheswaram and Choutuppal substations at the 400/220 kV level.

The battery storage systems must be available for one full operational cycle per day, i.e., 1 complete charge-discharge cycle lasting 4 hours. It must also guarantee a minimum system availability of 95% annually.

The battery storage systems must guarantee an AC-to-AC round-trip efficiency of 85% for the system each month.

Winners can also take a separate metered connection from the distribution companies or draw power from an interconnection point for the battery storage systems’ auxiliary power load.

TGGENCO will provide land on a right-to-use basis at an annual lease fee of ₹1 (~$0.011)/acre/year.

The projects must be commissioned within 18 months from the effective date of the battery energy storage purchase agreement (BESPA).

The BESPA, which will be signed within 30 days of the issuance of the letters of award, will be valid for 15 years from the project’s full commissioning.

The battery energy storage systems will receive viability gap funding (VGF) of ₹1.8 million (~$20,186)/MWh of the awarded capacity. The VGF will be disbursed in three tranches: 20% at financial closure, 50% at commercial operation date (COD), and 30% a year post-COD upon certification.

Winners must only use commercially established and operational technologies to minimize technology risk and achieve timely commissioning of the projects.

Last year, TGGENCO invited bids to set up a 250 MW/500 MWh pilot project for standalone battery energy storage systems in Telangana.