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Coal India inks MoU with Haryana for PPA 

February 16, 2024
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Coal India inks MoU with Haryana for PPA 
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Updated – February 15, 2024 at 08:47 PM.
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Kolkata

‘The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement (PPA),’ Coal India said in a stock exchange filing

“The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement (PPA),” Coal India said in a stock exchange filing

“The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement (PPA),” Coal India said in a stock exchange filing
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State-run coal miner Coal India on Thursday said it has signed a memorandum of understanding (MoU) with Haryana Power Purchase Centre (HPPC) which expressed its interest to purchase 800 megawatts (MW) of power from Mahanadi Basin Power (MBPL).

MBPL is a wholly owned subsidiary of Mahanadi Coalfields (MCL). MCL is the highest coal producing arm of CIL that operates in Odisha.

“The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement (PPA),” Coal India said in a stock exchange filing.

MoU framework

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 coal behemoth said, adding Haryana is keen to ensure electricity availability to meet its expanding energy demand.

“The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement (PPA),” Coal India said in a stock exchange filing.

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 giving its green signal last month for setting up 2×800 MW capacity plant in the first phase. It involves a capital investment of around Rs 15,947 crore.

“Coal India’s upcoming thermal power plants will be based on Ultra Super-Critical technology which has 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,” the coal miner said.

DISCOM pacts

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 had executed a power purchase agreement with Assam Power Distribution Company (APDCL) for purchase of 1200 MW from this plant.

Coal India earlier this week reported a 17.81 per cent year-on-year growth in its consolidated net profit to ₹9093.69 crore for the third quarter this fiscal. The coal behemoth had posted a net profit of ₹7719.11 crore for the third quarter last fiscal.

The company’s revenue during the third quarter of FY24 grew 2.79 per cent y-o-y at ₹36,153.97 crore as against R ₹35,169.33 crore in the corresponding period of FY23, buoyed by higher coal sales.

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Tags: businessHaryanaIndia
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