CHENNAI: The Tamil Nadu Generation and Distribution Corporation (Tangedco) has signed an MoU with Singareni mines in Telangana for the procurement of coal. The pact, signed on Monday, will be valid until March 31, 2024.
A senior Tangedco official told TNIE that the corporation currently procures coal for its thermal power stations from Talcher IB valley mines of Mahanadi Coalfields in Odisha and Singareni mines in Telangana. Annual requirement of coal for the thermal power stations, with a total capacity of 4,320 MW, is 223.4 lakh tonnes per annum (LTPA) at 85% plant load factor.
Of this, 195.63 LTPA is procured from Mahanadi Coalfields through a fuel supply agreement, while 40 LTPA is procured from Singareni through the MoU (total of 235.63 LTPA procured annually). The earlier pact with Singareni came to an end in March last year.
Another official said coal rate in Singareni is Rs 4,000 a tonne, while it is Rs 3,500 a tonne in IB valley mines. So, Tangedco received 178.64 LT of coal from IB valley mines, which is 91% of linkage, and 14.03 LT from Singareni during 2022-23. The total receipt of 192.67 LT is recorded to be the highest receipt of coal from mines in the last 10 years.
The official also said Tangedco will procure coal from Singareni only for the Mettur plant through the new MoU. The union government has also assured to allot more rakes for Tamil Nadu to transport coal in the future.