After establishment of Maharastra state in 1960, the government of Maharashtra gave priorities to power sector. And thereafter the locations were decided for the new power plants on the basis of site survey. Bhusawal has given an exceptional privilege as it fulfills the basic requirements for power plant. Bhusawal Thermal Power Station has an installed capacity of 1420 MW. The first unit was commissioned in 1968.
It is on the Nagpur-Bhusawal and Bhusawal-Kalyan sections of Central Railway. Coal-based thermal power stations consume large quantities of coal. For example, the Bhusawal Thermal Power Station consumed 2,400,000 tonnes of coal in 2006-07.Around 80 per cent of the domestic coal supplies in India are meant for coal based thermal power plants and coal transportation forms 42 per cent of the total freight earnings of Indian railways.