You are here: Home » News-IANS » Business-Economy
Business Standard

Reliance Power achieves 100% fuel security for Butibori plant

IANS  |  New Delhi 

announced on Monday that it has achieved full fuel security for its 2 x 300 MW (TPP) in following directions given by the state Ltd (CIL).

The is supplying 600 MW power to Reliance Infrastructure Distribution under a long term power purchase agreement for the benefit of over 28 Lakh consumers in Mumbai, the company said in a release.

"in its order dated January 31, 2018, has granted interim relief to and has directed CIL to immediately commence supply of coal to Unit 1 of Butibori TPP, equivalent to annual contracted quantity of 1.23 million tonnes per annum through its subsidiary South Eastern Coalfields Ltd," it said.

has set up the near through its subsidiary that is supplying its entire power to Reliance Infrastructure Ltd, which distributes to over 28 lakh consumers in suburban under a long-term Power Purchase Agreement approved by the Regulatory Commission.

"While coal is being supplied to Unit 2 by CIL through its subsidiary Western Coalfields Ltd, the coal supply was not commenced to Unit 1 of the despite a valid Letter of Assurance (LoA) issued by CIL subsidiary pursuant to the recommendations of Standing (Long Term) comprising of Ministry of Coal, Ministry of Power, CIL, Central Authority and Railways among others, in 2008, promising supply of 1.23 million tonnes per annum of coal for Unit 1," the statement said.

The issue of supply of coal to Unit 1 was pending for nearly 4 years after the commissioning of the unit and commencement of power supply to Reliance Infrastructure in April 2014 under a long-term Power Purchase Agreement approved by the Electricity Regulatory Commission, it said.

"The has noted that the Butibori Plant has fulfilled the pre-requisite of Shakti (Scheme for Harnessing and Allocating Koyala Transparently in India) policy, wherein Fuel Supply Agreements (FSAs) are to be signed with existing LoA holders, and has a case for having an executed in its favour," it said

After the directions of the Court, "both units of Butibori Plant would be getting assured coal supplies from CIL subsidiaries under 100 per cent FSA/ MoU and mitigate the uncertainties in supply of 600 MW quality and reliable power to citizens of Mumbai," it added.

Last month the company announced that the Butibori plant generated 1,061 million units of electricity operating at a plant load factor (PLF) of 80 per cent.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 12 2018. 17:08 IST