HYDERABAD: Singareni Collieries Company Limited (SCCL) has made arrangements to supply coal from its Naini coal block in Odisha to Tamil Nadu Generation and Distribution Corporation (TANGEDCO). SCCL is set to sign a Fuel Supply Agreement (FSA) with TANGEDCO within the next ten days for the annual supply of 2.88 million tonnes of coal from this block.
Tamil Nadu Generation and Distribution Corporation managing director M Govindarao met SCCL chairman and managing director N Balaram at Singareni Bhavan on Friday to discuss the matter. Govindarao stated that the 1,200 MW power plant at Udangudi in Tuticorin district, Tamil Nadu, required 2.88 million tonnes of G-11 grade coal annually and requested SCCL to supply the same.
Responding, Balaram said that with production having begun at the Naini coal block, SCCL is ready to supply coal via both rail and water routes.
He added that instructions have already been issued to Naini officials to make arrangements for supply and directed the coal transportation and marketing departments to ensure that the FSA is finalised.
Currently, SCCL supplies 1.75 million tonnes of coal annually to the North Chennai power plant. With this new agreement, an additional 2.88 million tonnes per year will be supplied from the Naini project, making Tamil Nadu the first consumer of coal from SCCL’s Naini block outside Telangana.