Coal India inks a MoU with Haryana to pave way for PPA

Coal India Limited (CIL) on Thursday signed a memorandum of understanding (MoU) with Haryana Power Purchase Centre (HPPC) which expressed its interest to purchase 800 MW of power from 'Mahanadi Basin Power Ltd' (MBPL) a wholly owned subsidiary of Mahanadi Coalfields Limited (MCL). The MoU's purpose is to formalise and deϐine the basic framework of discussions for the power purchase agreement. MCL is the highest coal producing arm of CIL that operates in Odisha. Haryana State is keen to ensure electricity availability to meet its expanding energy demand.

As per the MoU framework, power purchase will be under Section-62 of the Electricity Act, 2003. This refers to determining the power tariff in accordance with the provisions of the act, by the appropriate commission, for supply of electricity by a generating company to a distribution licensee.

The MoU was inked in the presence of Shri. Manohar Lal Khattar, Hon'ble Chief Minister of Haryana, in the state capital Chandigarh. While Mr. Debasish Nanda Director (Business Development) CIL signed the pact on behalf of the Maharatna coal miner, Mr. Randeep Singh, Chief Engineer represented HPCC which is a joint forum of the State's two DISCOMS.

CIL's initiative of setting up a 4000 MW Ultra-Supercritical Thermal Power Plant, in two phases, in Sundargarh district of Odisha, through MBPL has received a shot in the arm with the Cabinet Committee on Economic Affairs under Hon'ble Prime Minister giving its green signal on 18th January for setting up 2×800 MW capacity plant in the ϐirst phase. It involves a capital investment of Rs. 15,947 Crores (±20%).

CIL's upcoming thermal power plants shall be based on Ultra Super-Critical technology which have comparatively lesser carbon footprint than the conventional coal based plants. Since these will be erected near the pit-heads there would be a bouquet of beneϐits like optimised landed coal cost, low transit loss, higher plant load factor, better GCV coal feed and reduced adverse impact on environment.

In order to secure supply of electricity from the proposed MBPL, CIL is on the lookout for entering into pacts with interested State DISCOMs. Earlier the coal miner has executed a power purchase agreement with Assam Power Distribution Company Limited (APDCL) for purchase of 1200 MW from this plant.

Getting future ready to retain its energy leadership role CIL is foraying into diversiϐication ventures where setting up of coal based pithead power plants features prominently.

Shares of Coal India Limited was last trading in BSE at Rs. 466.40 as compared to the previous close of Rs. 452.40. The total number of shares traded during the day was 1181972 in over 18456 trades.

The stock hit an intraday high of Rs. 467.95 and intraday low of 443.10. The net turnover during the day was Rs. 542015960.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 MoU HaryanaPowerPurchaseCentre 800MW MahanadiBasinPower MahanadiCoalfields