All You Need to Know About Lara Thermal Power Plant

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All You Need to Know About Lara Thermal Power Plant

Updated on Jul 17, 2026, 01:54 PM IST
Written & Edited by Siddhi Jain

 

Project at a Glance

Project Name

Lara Super Thermal Power Plant (LSTPP)

Project Sector

Coal-Fired Super-Critical Thermal Power Station 

Project Status

Multi-Stage: 

  • Stage I: Fully Operational

  • Stage II: Under Construction

  • Stage III: Board-Approved 

Project Location 

Raigarh District, Chhattisgarh

Developer/Owner

NTPC Limited

Stage I Capacity (Fully Operational) 

2 × 800 MW = 1,600 MW - Unit I & II

Stage II Capacity (Under Construction) 

2 × 800 MW = 1,600 MW - Unit III & IV

Stage III Capacity (Board Approved)

2 × 800 MW = 1,600 MW - Unit VI & VII

Fuel Supply 

Captive coal mines: Talabira II-III coal blocks 

 

Project Overview

The Lara Super Thermal Power Plant (LSTPP) is a 4,800 MW ultra-large coal-fired power station being developed by NTPC Limited across three stages in Raigarh District, Chhattisgarh. Upon completion of all three stages, comprising six 800 MW super-critical units, it will become India's largest thermal power station, surpassing the Vindhyachal Super Thermal Power Station (4,760 MW) and the Mundra Thermal Power Station (4,620 MW). 

Stage I (1,600 MW) is fully operational. Stage II (1,600 MW, INR 15,530 crore) is under construction by BHEL. Stage III (1,600 MW, Rs 20,456.70 crore) received NTPC Board investment approval on July 11, 2026. 

Stage I uses super-critical technology. It is a pulverised coal-fired boiler technology, a more efficient combustion process than sub-critical technology, generating more electricity per tonne of coal and producing lower CO2 emissions per MWh. Furthermore, Stage II & III use ultra-supercritical technology.

The Bharat Heavy Electricals Limited (BHEL) is the EPC contractor for both Stage I and Stage II. For Stage III, NTPC issued an Invitation for Bids for the Main Plant Package on November 24, 2025, with L&T marked as a leading bidder in the large thermal project segment in April 2026.

The timing of the Stage III approval, with Stage I operational and Stage II in early construction, reflects India's escalating power demand. The National Electricity Plan has identified a requirement for new coal-based capacity through the 2030s to provide the dispatchable baseload that complements wind and solar generation. 

 

Lara Thermal Power Plant Location

All three stages of the Lara Thermal Power Plant are located at the same site near Lara village in the Pussore (Pusour) taluk of Raigarh district, Chhattisgarh, India. The entire integrated thermal power project occupies approximately 2,400 acres of land at this single location.

The plant is located at a pithead site in the Raigarh coal belt of Chhattisgarh. It is one of India's most important coal-mining districts. The pithead location gives the plant a direct logistics advantage for coal supply, reducing transportation costs and improving fuel security. 

 

Technical Specifications

Unit Technology

Super-critical pulverised coal-fired 

Main Plant Components 

Steam generator (boiler), turbine-generator set, auxiliary systems, electrostatic precipitator (ESP) for particulate control 

Emissions Controls 

NOx control system; Flue Gas Desulfurisation (FGD) system 

Chimneys

220 m single stack OR two 150 m stacks — to meet stack height and dispersal requirements 

Fuel 

Bituminous coal — primarily from captive Talabira II-III coal blocks; pithead location minimises transportation

Stage II Construction Method

Stage II is built on land adjacent to Stage I 

Grid Integration

Integrated into India's Northern and Eastern regional grids via PGCIL transmission infrastructure

 

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Project Background

The Lara Thermal Power Project was conceived as part of NTPC's long-term capacity expansion strategy in India's coal-rich Chhattisgarh state. The state hosts several of NTPC's major thermal plants, including the Korba Super Thermal Power Station and the Sipat Super Thermal Power Plant.

The project originated from a Memorandum of Understanding (MoU) signed by NTPC and the Chhattisgarh government in July 2009. The MoU detailed the construction of a 4,000 MW power plant in the state.  

The project was originally conceived under an MoU for 4,000 MW (five units of 800 MW each). One 800 MW unit was cancelled during the project’s evolution, but the overall plan was subsequently expanded and revised to six units of 800 MW each, increasing the final proposed capacity to 4,800 MW. 

Villagers raised opposition to the NTPC project in September 2013, citing concerns about displacement, land acquisition, and the environmental impact of a large coal-fired power station in a predominantly agricultural and forested area. 

Despite initial community resistance, the project proceeded through environmental clearance and land acquisition processes. Stage I construction was completed, and both 800 MW units were commissioned, making Stage I a fully generating contribution to Chhattisgarh's power grid. 

Stage II received NTPC Board approval in August 2023 for INR 15,530 crore. The foundation stone was laid on February 24, 2024, with BHEL as EPC contractor, the same arrangement as Stage I.  

Stage III's development accelerated in early 2025 with NTPC's announcement that it was planning a third stage of two additional 800 MW units. In January 2025, NTPC sought an EIA study for the Stage III expansion. In February 2025, an IFB for EIA consultants was opened. The Expert Appraisal Committee granted Terms of Reference for the Stage III EIA in August 2025. 

The Stage III Main Plant Package IFB followed in November 2025. NTPC's Board then approved the Rs 20,456.70 crore investment at its July 11, 2026, meeting, completing the formal sanction process and enabling construction preparations to begin. 

Stakeholder Details

Stakeholder Role

Individual/Organisation

Developer/Owner

NTPC Limited

EPC Contractor (I & II)

Bharat Heavy Electricals Limited (BHEL) 

Coal Supplier (Captive) 

Coal India Limited / Talabira II-III coal blocks 

Expert Appraisal Committee

MoEF&CC EAC (Power) 

Transmission Authority

Power Grid Corporation of India Limited (PGCIL) 

Regulatory Authority

The Central Electricity Regulatory Commission (CERC) regulates interstate tariffs and grid codes applicable to NTPC's generation.

 

Three Stages of the Lara Thermal Power Plant

Stages

Units

Capacity

Current Status

Stage I

Unit 1 & 2

1,600 MW (800 MW each)

Fully Operational

Stage II

Unit 3 & 4

1,600 MW (800 MW each)

Under Construction

Stage III

Unit 6 & 7

1,600 MW (800 MW each)

Approved Investment

Total Build Out

6 Units X 800 MW

4,800 MW

        _

 

Lara Thermal Power Plant Stage II Status

As of July 2026, Lara Thermal Power Plant Stage-II is under active construction in Raigarh, Chhattisgarh, with both 800 MW units progressing steadily toward their 2028 commissioning targets. Following the foundation stone laying by Prime Minister Narendra Modi in February 2024 and construction commencement in November 2024, physical progress has accelerated through 2025–2026, with Unit 3 reaching approximately 20% completion and Unit 4 at around 11% completion by September 2025. 

The 1,600 MW (2 × 800 MW) expansion, approved by NTPC's Board in August 2023 with an investment of INR 15,530 crore, employs Ultra Super Critical technology and is being built on land already available from Stage I, eliminating the need for fresh land acquisition. 

Lara Thermal Power Plant Stage III 

Lara Thermal Power Plant Stage III is a 1,600 MW (2 × 800 MW) expansion project approved by NTPC Limited's Board of Directors on 11 July 2026 with an estimated investment of INR 20,456.70 crore. 

Stage III will use Ultra Super Critical technology to ensure higher efficiency and lower specific coal consumption and CO₂ emissions compared to conventional sub-critical units. The project will be developed on the same 2,400-acre site without requiring additional land acquisition, leveraging existing infrastructure from Stage I and Stage II. 

Coal will be supplied from NTPC's nearby Talaipalli coal block in the Mand-Raigarh coalfield through a Merry-Go-Round (MGR) system. Water requirements will be met from the Mahanadi River via the Saradih Barrage. Upon completion, Stage III will bring Lara's total installed capacity to 4,800 MW, making it India's largest thermal power plant, surpassing the 4,760 MW Vindhyachal facility in Madhya Pradesh.

 

Lara Thermal Power Plant Project Cost & Investment Details

Financial Items

Details

Stage I Investment 

INR 15,800 crore (approximately USD 2 billion)

Stage II Estimated Cost

INR 15,530 crore (approximately USD 1.87 billion) 

Stage II Funding Mode

NTPC internal funding 

Stage III Investment Approved

INR 20,456.70 crore (approximately USD 2.46 billion) 

Total Project Investment (All 3 Stages)

Approximately INR 51,787 crore (~USD 6.2 billion) — Stage I (INR 15,800 cr) + Stage II (INR 15,530 cr) + Stage III (INR 20,456.70 cr) 

 

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Project Scope

The following is the project scope of the Lara Thermal Power Plant:

  • Coal Supply: Pit-head location with coal sourced from NTPC's Talaipalli coal block in Mand-Raigarh coalfield via Merry-Go-Round (MGR) system for 24×7 fuel availability.

  • EPC Scope: Complete design, engineering, manufacture, supply, construction, erection, testing, and commissioning of steam generators, steam turbines, auxiliaries, emission control systems, control & instrumentation, balance of plant, and civil & structural works. 

  • Emission Control Systems: Installation of electrostatic precipitators (ESP), flue gas desulphurisation (FGD), selective catalytic reduction (SCR) for NOx control, and other pollution control equipment to comply with CPCB norms.

  • Ash Handling: Comprehensive ash disposal infrastructure, including ash ponds and ash handling systems with provisions for 100% ash utilisation. 

  • Grid Connectivity: Step-up transformers, switchyard, and transmission infrastructure to evacuate power to the national grid with 50% allocation to Chhattisgarh and the remainder to Gujarat, Madhya Pradesh, Maharashtra, Goa, Daman & Diu, and Dadra & Nagar Haveli. 

  • Community Development: NTPC initiatives in nearby areas covering education, drinking water, sanitation, health, and women's empowerment as part of corporate social responsibility. 

 

Project Timeline

Year

Event

11 July 2026

NTPC Board of Directors approves investment proposal for Lara Super Thermal Power Project Stage-III 

24 November 2025

NTPC issues an Invitation for Bids (IFB) for the Main Plant Package for Stage III (2 × 800 MW)

September 2025

Stage II Unit 3 at 20% physical completion; Stage II Unit 4 at 11% physical completion. 

August 2025

MoEF&CC Expert Appraisal Committee (EAC) grants Terms of Reference for the Stage III Environmental Impact Assessment

February 2025

NTPC opens Invitation for Bids (IFB) for Environmental Impact Assessment (EIA) consultants for Lara Stage III 

24 February 2024

The developer laid the foundation stone for Stage II at the Lara site. 

August 2023

NTPC Board clears investment proposal for Stage II of the project.

2014–2017 (Stage I construction)

BHEL commences and completes the construction of Stage I 

September 2013

Villagers register opposition to NTPC's Lara project  

 

Benefits

The following are the benefits of the project:

  • Reduces Carbon Dioxide Emissions: The use of supercritical & ultra-super critical technology lowers specific coal consumption and reduces carbon dioxide emissions.

  • Meets Rising Electricity Demand: The project supports India's growing power requirements driven by industrialisation, urbanisation, economic expansion, and increasing peak summer consumption.

  • Technology Efficiency: Stage-III units will use Ultra Super Critical technology, ensuring higher thermal efficiency, lower specific coal consumption, and reduced CO₂ emissions per unit of electricity generated. 

  • Employment Generation: Construction and operation will create substantial direct and indirect employment opportunities in the Raigarh district and the surrounding areas of Chhattisgarh. 

  • Regional Power Allocation: 50% of the power generated will be allocated to Chhattisgarh state, improving local energy security, while the remainder will benefit Gujarat, Madhya Pradesh, Maharashtra, Goa, and Union Territories.

  • Grid Stability and Renewable Integration: The plant will provide critical baseload thermal power while enabling greater integration of variable renewable energy sources into the national grid through operational flexibility.

 

Conclusion

The Lara Thermal Power Plant marks a key milestone in the energy industry. Developed by the National Thermal Power Corporation (NTPC), the power plant is designed to meet the energy requirements of the region. The strategic position and incorporation into the coal-fired superthermal power plant subsector emphasize its importance in strengthening the nation’s energy infrastructure. 

 

 

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