The Cabinet Committee on Investment (CCI) has approved a proposal by NTPC Ltd
State-run miner Coal India Ltd
Coal India, which produces nearly 80 percent of India's coal, supplies fuel at rates cheaper than its spot prices to those with whom it has long-term fuel supply pacts in arrangements called coal linkages.
About 70 percent of power generated in India is from burning coal.
The power plants of NTPC, the country's largest thermal power producer, would have a life of about 35 years and would be set up on a pit-head with eco-friendly, super-critical technology, the statement said.
The North Karanpura plants, to be located in Chatra district, are NTPC's maiden project in Jharkhand, where about 26 percent of the population is tribal.