Coal Pact For Hinduja Power Unit Cleared

The high-powered board, headed by the cabinet secretary, on Friday cleared the coal supply and transport agreement between the Hinduja-National Power combine and Mahanadi Coalfields Ltd.

Official sources said that the agreement is expected to be signed by the end of this month. The clearance is expected to take the 1000 mw Visakhapatnam fast-track power project, being promoted by the Hinduja-National Power combine, closer towards a counter-guarantee.

In its clearance, the board resolved some of the pending issues arising out of the force majure conditions and the damages that MCL would have to pay the developer in the event of any delay in coal supplies for the project.

 

Once the coal suppy agreement is signed, the PPA between the developer and the state electricity board is also expected to be signed.

The project had been hanging fire for over two years due to difference over the coal supply agreement, some points of which needed approvals from the board.

One of them related to the extent of damages that MCL would have to pay to the developer in case supplies were delayed. MCL wanted the promoter to list out the reasons by which they would be evaluating the extent of damages that they would have to pay, something that the latter refused to do.