Coal India Limited (CIL), a Maharatna Public Sector Undertaking, has invited bids from eligible financial institutions to provide a Rupee Term Loan of ₹713.40 crore for its upcoming 187.5 MW/750 MWh standalone Battery Energy Storage System (BESS) project at Choutuppal in Telangana.

The project has an estimated capital cost of ₹891.75 crore, excluding operation and maintenance expenses. It will be financed through an 80:20 debt-to-equity structure. The scheduled commercial operation date (COD) is October 29, 2027, with the project expected to have an operational life of 15 years.

Under the tender, CIL has kept the Earnest Money Deposit (EMD) and tender processing fee at nil. Bidders will also not be required to provide a conventional cash Performance Bank Guarantee. Instead, the loan security will be created through a Deed of Hypothecation covering the project’s non-current assets, including plant and machinery, while excluding land.

The tender, referenced as CIL/RTL/E-Tender/2026-27/001, was published on August 20, 2026. The deadline for seeking clarifications is August 27, while the pre-bid conference is scheduled for August 26. Online bid submission will remain open until September 10, 2026, at 5:00 PM IST. The techno-commercial bids will be opened on September 11 at 11:00 AM, while the price bid opening date will be communicated separately to technically and commercially qualified bidders.

Eligible participants include Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and financial institutions regulated under an Act of Parliament. Bidders must have a minimum net worth of ₹500 crore as of March 31, 2026. Consortium bidding has not been permitted under the tender.

The proposed loan will have a 10-year tenure without a moratorium. Principal repayment will begin after COD through 40 equal quarterly installments. Interest payments will start from the month following the first loan disbursement.

Financial institutions can quote either internal reference rates, such as the Marginal Cost of Funds-based Lending Rate (MCLR), or external benchmarks, including the RBI Repo Rate or Treasury Bill yields. CIL will evaluate offers based on the lowest net interest rate quoted. The validity of bids will remain 120 days from the opening of the techno-commercial bids.

The tender marks a significant financing step for CIL’s standalone BESS project, supporting the development of large-scale energy storage infrastructure in Telangana.:::