The Singareni Collieries Company Limited (SCCL) will supply 1 MnT of coal to Tamil Nadu to fuel the thermal power plants in the state.
A memorandum of understanding (MoU) was signed between SCCL and Tamil Nadu Power Generation and Distribution Corporation Limited (TNPGDCL) for the former to supply 1 MnT of coal to the latter initially; negotiations are underway to increase the quantity to 3 MnT per annum the next fiscal.
On a comparative basis, the landing cost of coal from SCCL will be cheaper than that from Coal India Limited or overseas markets. Initially, the MoU covers higher coal grades of G5 and G7; while, lower coal grades might be considered later.
SCCL will supply the coal from the Manuguru and Bhupalapalli mines in the Kothagudem area of Telangana that will be used in the 1400 MW thermal power plant at Mettoor in Tamil Nadu.
Besides, SCCL plans to ramp up its production by 70 MnT by the next fiscal in view of the growing demand.
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