Singareni to supply 7 mt coal to KPCL projects.

Singareni Collieries Company Ltd. (SCCL) and Karnataka Power Corporation Ltd. (KPCL) have entered into an agreement wherein SCCL will supply 7 million tonnes of coal to the three newly constructed units of KPCL’s Bellary thermal power project and a new unit of Yerramarus thermal power station in Raichur.

Out of 7 mt, 4 mt will be supplied to the newly constructed Unit-1, Unit-2 and Unit-3 of the Bellary thermal power station, Kudithini, and 3 million tonnes to Yerramarus Thermal Power Station, near Raichur.

N Sridhar, Chairman and Managing Director of SCCL, and Kumar Naik, MD of KPCL, exchanged the agreement documents in the presence of Karnataka Chief Minister Siddaramaiah in Bengaluru on recently.

SCCL has been supplying coal to Karnataka for the past 27 years. Till last financial year, the supplies were limited to around 6 million tonnes per annum. After the formation of Telangana, SCCL has increased its production from 52 million tonnes to 60 million tonnes per annum, registering a growth of 15 per cent. This has enabled the company to enhance dispatches to Karnataka. In 2015-16, SCCL supplied 8.6 million tonnes to Karnataka, up 33 per cent from the previous fiscal. Keeping in view the prompt and qualitative supplies of coal, KPCL come forward to ink an agreement with SCCL for the new power projects, the companies said.

This is a win-win agreement between two State organisations, where KPCL will get quality coal at cheaper rates and SCCL will get assured revenue from a regular customer, they added.

With this new agreement the total dispatches to Karnataka would reach 13 million tonnes a year.

HBL