Coal India, HPPC Sign MoU for 800 MW Supply

Coal India has recently signed a memorandum of understanding (MoU) with the Haryana Power Purchase Centre, marking a significant step towards addressing Haryana's increasing energy requirements. Under this agreement, Coal India will supply 800 MW of electricity sourced from the Mahanadi Basin Power (MBPL). This collaboration sets the groundwork for a future power purchase agreement (PPA), which will be instrumental in meeting Haryana's growing energy demands.

The arrangement, governed by Section-62 of the Electricity Act, 2003, outlines the framework for determining the power tariff in accordance with regulatory provisions. This ensures a transparent process for the supply of electricity from a generating company to a distribution licensee, thereby facilitating reliable energy access for the state.

In a strategic move towards bolstering power generation capabilities, Coal India is embarking on the establishment of a 4,000 MW ultra-supercritical thermal power plant in Sundargarh district, Odisha, through its subsidiary, Mahanadi Basin Power (MBPL). Recently approved by the Cabinet Committee on Economic Affairs, the first phase of this initiative involves setting up a 2×800 MW capacity plant, requiring a capital investment of approximately Rs 15,947 crore. Situated near the pit-head, these plants offer various advantages including optimized coal costs, reduced transit losses, enhanced plant load factor, superior coal feed characteristics, and minimized environmental impact.

MBPL operates as a wholly-owned subsidiary of Mahanadi Coalfields (MCL), the leading coal-producing arm of Coal India operating in Odisha. To ensure a steady supply of electricity from the proposed MBPL project, Coal India is actively engaging with interested state distribution companies to explore potential agreements. This proactive approach underscores Coal India's commitment to supporting regional energy needs through sustainable power solutions.

News by Rahul Yelligetti