PIB press release
Wednesday, August 29, 2007; Ministry of Coal
SUPPLY OF COAL TO THERMAL POWER PLANTS IN MAHARASHTRA
Maharashtra State Power Generation Company Limited (Mahagenco) have requested supply of coal on tapering basis for their future expansion projects till their coal blocks come into production. These expansion projects include Bhusawal-3, Parli-3, Paras-3, Koradi-1 (Replacement), Chandrapur-1 and Koradi-2. The request of Mahagenco was considered by the Standing Linkage Committee (Long-term) on Power in its meeting held on 2.8.2007 which approved grant of Letter of Assurance (LOA) to Mahagenco on “tapering basis” to the tune of maximum quantity of 2 million tonnes per annum, keeping in view actual requirement/shortfall from captive mines of Mahagenco. However, the commercial arrangements in this regard would be worked out between the consumer and CIL/specifically linked company for supply of coal on short term tapering basis. In addition, Mahagenco has also been granted LOA to the tune of about 10 million tones during 2006 for their power projects.
The request from the Government of Maharashtra was for supply of coal from Western Coalfields Limited (WCL) area. The Committee has approved LOA to Mahagenco on “tapering basis” on “cost plus basis” from Coal India Limited/specifically linked company, to the tune of maximum quantity of 2 million tones per annum keeping in view actual requirement/shortfall from the captive mines of Mahagenco.
The above information was given by Dr. Dasari Narayana Rao, Minister of State for Coal in a written reply in the Lok Sabha today.