Bses Signs 3-Year Pact With Secl

BSES, the power generation and distribution company, has signed a three-year agreement with South-Eastern Coalfields (SECL), for supply of two million tonnes of coal annually. The power major will stop buying a part of its requirement from Mahanadi Coalfields and shift its entire purchases to SECL.

The agreement was signed on January 28, 1997 by the BSES chairman and managing director, R V Shahi and SECL chairman, U Kumar at Calcutta. According to the deal, BSES will source the bulk of its coal requirements for its 500 MW Dahanu plant from SECL.

The agreement springs from the recommendation of the permanent linkage committee of the centre, which allocates fuel linkages and supplies.

 

This pact would translate into substantial cost savings for BSES. Currently, it is sourcing its coal requirements from SECL and Mahanadi Coalfields both CIL subsidiaries.

While BSES pays Rs 1200 per tonne to SECL, it has to pay an additional Rs 35 per tonne when it sources its coal from, Mahanadi due to the enhanced freight cost.

The agreement is a formalisation of the fuel linkage we already have with SECL. It makes sense to have a one point source for coal which is comparatively nearer, said S S Dua, Director, BSES.

The permanent linkage committee had sanctioned two million tonne of coal annually on the assumption that the Dahanu plant would operate at a plant load factor of 68 per cent. However, it is currently operating at a PLF of about 100 per cent. It is for this reason that BSES is importing coal.

Meanwhile, BSES is yet to receive the go ahead from the Maharashtra Pollution Control Board for the 500-MW power plant. The Maharashtra government has given the in principle approval to the project, according to sources.