HYDERABAD: NTPC Tamilnadu Energy Company Limited (NTECL) has signed a Memorandum of Understanding (MoU) with Singareni Collieries Company Limited (SCCL) to procure 10 lakh tonnes of coal a year.
M Shivarama Krishna, CEO of NTECL has exchanged the MoU papers with N Sridhar, CMD of SCCL in Hyderabad on Friday.
NTECL, a joint venture of NTPC and Tamil Nadu Generation and Distribution Corporation (Tangedco), will take the coal supplied by SCCL to its 1,500-Mw Vallur Thermal Power Plant.
As the distance between SCCL mines in Telangana to Vallur is more than 650 km, the coal will be transported to Kakinada. From there it will be shipped to Ennore port and then it will be transported to Vallur.
SCCL, a joint venture between the Telangana government and the Government of India, produced 614 lakh tonnes of coal in FY17. The company plans to increase not just its coal production for FY18 but also its client base from all over India.
“Our MoU with NTECL to supply 10 lakh tonnes of coal per year will help us increase our supplies to other states and expand in India,” said Sridhar.