"Coal India Signs MoU with Haryana for Power Purchase Agreement (PPA)"

"Coal India Signs MoU with Haryana for Power Purchase Agreement with Mahanadi Basin Power" State-owned coal giant Coal India announced on Thursday the signing of a memorandum of understanding (MoU) with the Haryana Power Purchase Centre (HPPC), expressing interest in procuring 800 megawatts (MW) of power from Mahanadi Basin Power (MBPL).

MBPL, a wholly owned subsidiary of Mahanadi Coalfields (MCL), operates in Odisha, serving as the highest coal-producing arm of Coal India Limited (CIL).

The purpose of the MoU is to formalize and establish the foundational framework for discussions on the power purchase agreement (PPA), according to a filing by Coal India to the stock exchange.

Under the MoU framework, power procurement will fall under Section 62 of the Electricity Act, 2003, which entails determining the power tariff in accordance with the provisions of the act by the appropriate commission for electricity supply from a generating company to a distribution licensee. Haryana aims to ensure electricity availability to meet its growing energy demands.

Additionally, Coal India's plans for a 4000 MW ultra-supercritical thermal power plant in Sundargarh district, Odisha, through MBPL, received approval from the Cabinet Committee on Economic Affairs. The initial phase will involve setting up a 2×800 MW capacity plant, requiring a capital investment of approximately Rs 15,947 crore.

Coal India highlighted that these upcoming thermal power plants would utilize Ultra Super-Critical technology, offering a lower carbon footprint compared to conventional coal-based plants. The proximity of these plants to the coal mines will result in various benefits such as optimized coal costs, reduced transit losses, higher plant load factors, better coal feed, and minimized environmental impact.

In a bid to secure electricity supply from the proposed MBPL, Coal India is actively seeking agreements with interested state DISCOMs. Previously, the company finalized a power purchase agreement with Assam Power Distribution Company (APDCL) for the procurement of 1200 MW from the same plant.

Earlier this week, Coal India reported a robust 17.81% year-on-year growth in its consolidated net profit to ₹9093.69 crore for the third quarter of the fiscal year 2023-24. This surge was supported by a 2.79% increase in revenue, reaching ₹36,153.97 crore, driven by higher coal sales compared to the corresponding period last fiscal year.

HBL