WCL, Mahagenco sign coal supply agreement

Nagpur, Apr 22 (UNI) Public sector coal company Western Coalfields Limited (WCL) and Maharashtra State Electricity Generation Company (Mahagenco) have signed a coal supply agreement on a negotiated price basis.

The agreement was signed by WCL Chairman-cum-Managing Director G S Chugh and Mahagenco Managing Director Ajoy Mehta here last week, according to a WCL statement here.

The agreement is for dedicated supply to Mahagenco by WCL from three new projects in Vidarbha, namely Durgapur extension opencast mine, with a production capacity of 2 million tonnes per annum (mtpa), Bhatadi opencast mine (0.65 mtpa), both in Chandrapur area, and Waghoda underground mine (0.39 mtpa) in Nagpur area.

WCL would now develop these three projects to ensure supply to Mahagenco of coal of assured quantity and quality, the statement said adding the capital outlay of these projects was Rs 189.12 crore.

The negotiated price mechanism would ensure an internal rate of return (IRR) of 12 per cent for WCL, it said.

WCL already has a coal supply agreement with Mahagenco for dedicated supply of coal from two coalmines and is negotiating another similar agreement for three more projects that would have a combined capacity of 2.20 mtpa, the statement added.

UNI