Singareni, NTPC sign four pacts on coal supply, advance payment, flexibility

Singareni, NTPC sign four pacts on coal supply, advance payment, flexibility

Singareni Collieries Company Ltd and NTPC Ltd have signed four agreements on supply of coal to Kudgi and Solapur thermal units of the latter, for adjustment of total coal supply under linkage for its plants based on the need and for advance payment for fuel (coal) supply to its Ramagundam plant.

As per the agreements signed by Executive Director (coal movement) of SCCL J. Allwyn and Executive Director of NPTC (southern and western regions) Debashish Chattopadhyay, Singareni has agreed to supply 67.5 lakh tonnes of coal to the NTPC’s 2x800 megawatt thermal station at Kudgi in Karnataka and another 28.2 lakh tonnes to 660 megawatt project at Solapur in Maharashtra every year.

Authorities of Singareni stated that the agreements were signed on Monday evening on the instructions from the Ministry of Coal. The third agreement was signed for advance payment of money to Singareni for supply of coal to the NTPC’s Ramagundam plant, against the practice of making payment after getting the coal supplies. The Ramagundam plant consumes about 85 lakh tonnes to 90 lakh tonnes of coal every month.

The fourth agreement facilitates adjustment of coal supplies of 207.7 lakh tonnes having linkage between different units of NTPC. Singareni authorities stated that the latter two agreements were first of their king between the two entities although they have coal supply agreements for long.

According to officials of Singareni, the coal company supplies coal to thermal power plants in 16 States including Telangana and Andhra Pradesh. Other States which get coal supplies to thermal plants there include Karnataka, Maharashtra, Tamil Nadu, Odisha, Chhattisgarh, Madhya Pradesh, Kerala, Haryana, Uttar Pradesh, Jharkhand, Himachal Pradesh, Gujarat, West Bengal and Goa.

Further, they stated that Singareni had supplies 549.69 lakh tonnes coal to thermal power plants and another 117.25 lakh tonnes to cement, sponge iron, pharmaceutical, fertilizers, paper, ceramics and other non-power generating companies in 2022-23. The total coal sales include a record of 2.58 million tonnes sold through 8th tranche of coal auctions.