Coal India (CIL) has signed a Memorandum of Understanding (MoU) with Haryana Power Purchase Centre (HPPC) which expressed interest of HPPC to purchase 800 MW of power from Mahanadi Basin Power (MBPL) a wholly owned subsidiary of Mahanadi Coalfields (MCL). The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement. MCL is the highest coal producing arm of CIL that operates in Odisha.
As per the MoU framework, 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.
Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.
