| Coal India on Thursday signed a memorandum of understanding (MoU)
with Haryana Power Purchase Centre (HPPC) which expressed its interest 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 for the power purchase agreement.
MCL is the highest coal producing arm of CIL that operates in Odisha. Haryana State is keen to ensure electricity availability to meet its expanding energy demand.
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. |