VIJAYAWADA: The Energy department has refuted the allegations of Leader of the Opposition N Chandrababu Naidu that the State is purchasing coal at a higher cost from Singareni Collieries Company Ltd (SCCL) when it is available at a much lower rate in Mahanadi Coalfields Ltd (MCL).
The officials said that the purchase from SCCL is being done as per the agreement made in 2014.
In a statement on Saturday, APGENCO managing director B Sreedhar explained that the State was procuring coal from SCCL since 2014-15 itself and entered into a memorandum of understanding (MoU) in 2016-17 for procurement of 50 lakh Metric Tonnes (MT) as the supply from MCL was less.
He noted that the APGENCO also agreed to pay 20 per cent in addition to the notified price to SCCL as per the MoU.
“The SCCL has informed the APGENCO that as per the New Coal Distribution Policy (NCDP) of Union Ministry of Coal, it was mandated to sell 10 per cent of the production through e-auction for which reserve price is 20 per cent over and above the notified basic price of non-power sector.
"The SSCL has also said the price structure prescribed by Union Ministry of Coal under NCDP policy was applicable for all the fuel supply agreement holders who were taking additional coal under the MoU,” he explained.
He revealed that the Fuel Supply Agreement (FSA) with MCL for supply 8.312 million tonnes of coal per annum (MTPA) for Dr. Narla Tatarao Thermal Power Station (Dr.NTTPS), Vijayawada, and 1.88 MT of coal for Rayalaseema Thermal Power Plant (RTPP), Kadapa. APGENCO, subsequently, entered into an agreement with SCCL for supply of 3.88 MTPA of coal to RTPP.
The APGENCO was procuring additional coal from SCCL under MoU through e-Auction or premium price since 2014 as the linkage materialisation from MCL was only 60 to 70 per cent.