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 company announced through an exchange filing.
The MoU’s purpose is to formalise and define the basic framework of discussions for the power purchase agreement. MCL is the highest coal producing arm of CIL that operates in Odisha.
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 Manohar Lal Khattar, Chief Minister of Haryana, in the state capital Chandigarh. While Debasish Nanda Director (Business Development) CIL signed the pact on behalf of the Maharatna coal miner, Randeep Singh, Chief Engineer represented HPCC which is a joint forum of the State’s two DISCOMS.
Boost for Ultra-Supercritical Thermal Power Plant
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 Prime Minister giving its green signal on 18th January for setting up 2×800 MW capacity plant in the first phase. It involves a capital investment of Rs 15,947 Crores (±20%).
Capital Investment and Green Signal
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.
