NTPC Ltd.

State-run National Thermal Power Company (NTPC) signed an agreement with Singareni Collieries Company (SCCL), an Andhra Pradesh government-owned coal mining company for purchasing 5 million tonnes of additional coal, by shelling out Rs 814 extra per tonne.

As per the agreement, SCCL will supply 5 million tonnes of additional coal to NTPC stations for a period of one year from July 1, 2011, to June 30, 2012, in addition to supply of 10.2 million tonnes of coal per annum under the existing long term fuel supply agreement with the thermal power major. With the current supplies from SCCL NTPC is able to achieve 80-84% Pay Load Factor (PLF). The company wants to achieve higher levels and needs extra reserves of coal for the same. This Memorandum of Understanding (MoU) is for short term supplies and is for one year.

Recently, the Ministry of Coal cancelled five coal blocks - Chhati Bariatu, Kerandari, Chhati, Bariatu (South), and Brahmini in various parts of Jharkhand as there was no progress in developing the coal fields which were allotted for captive purpose. The ministry has also issued warning letters to NTPC for not showing any progress in two coal mines - Talaipalli coal block (Chhattisgarh), and Pakri Barwadih, (Jharkhand).