Bid & Tender


Coal India Inks MoU with HPPC for Supply of 800 MW of Electricity

Coal India has inked a memorandum of understanding (MoU) with Haryana Power Purchase Centre for supply of 800 MW of electricity from Mahanadi Basin Power (MBPL). This agreement lays the foundation for a future power purchase agreement (PPA), and will help Haryana meet its rising energy demand.


As per the MoU framework, the power purchase will be under Section-62 of the Electricity Act, 2003. This refers to determining the power tariff in accordance with the provisions of the act, by the appropriate commission, for supply of electricity by a generating company to a distribution licensee. The state government seeks to ensure electricity availability to meet its expanding energy demand.


The coal mining company's initiative of setting up a 4,000 MW ultra-supercritical thermal power plant will be in two phases, in Sundargarh district of Odisha, through Mahanadi Basin Power (MBPL). It has received a boost with the Cabinet Committee on Economic Affairs granting approval last month to establish 2×800 MW capacity plant in the first phase. It involves a capital investment of around Rs 15,947 crore. Since these will be erected near the pit-head, which would offer benefits such as optimized landed coal cost, low transit loss, higher plant load factor, better GCV coal feed and reduced adverse impact on environment.


MBPL is a wholly-owned subsidiary of Mahanadi Coalfields (MCL). MCL is the highest coal producing arm of CIL that operates in Odisha. In order to secure supply of electricity from the proposed MBPL, CIL is exploring to enter into agreements with interested state distribution companies.


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