NTPC buys 5-mn tonne coal from SCCL at extra price

State-run National Thermal Power Company (NTPC), which is looking for coal to produce power after the Coal Ministry cancelled five coal blocks allotted to it, is all set to buy 5 million tonnes of coal from Singareni Collieries Company (SCCL), by shelling out Rs 814 extra per tonne.

According to NTPC, it entered into an agreement with SCCL, an Andhra Pradesh government-owned coal mining company, for coal supply in addition to normal supply.

"Under the MoU, SCCL would supply 5 million tonnes of additional coal to NTPC stations for a period of one year from July 1, 2011, to June 30, 2012, in addition to supply of 10.2 million tonnes of coal per annum under the existing long term fuel supply agreement with the thermal power major," a company statement said today.

"We will charge Rs 814 extra per tonne from NTPC on the long term contract price of Rs 600-1900 per tonne," a senior official of SCCL told PTI.

The Ministry of Coal recently cancelled five coal blocks - Chhati Bariatu, Kerandari, Chhati, Bariatu (South), and Brahmini in various parts of Jharkhand as there was no progress in developing the coal fields which were allotted for captive purpose.

The ministry has also issued warning letters to NTPC for not showing any progress in two coal mines - Talaipalli coal block (Chhattisgarh), and Pakri Barwadih, (Jharkhand).

According to a NTPC official, the power ministry is lobbying with coal ministry to revoke the de-allocation letters issued to the PSU power major.

When contacted, NTPC spokesperson said with the current supplies from SCCL they are able to achieve 80-84 per cent Pay Load Factor (PLF).

"If we want to achieve higher levels we need extra reserves of coal. This [MoU] is for short term supplies and is for one year," the spokesperson said.