Coal India (CIL) on February 15 signed a memorandum of understanding (MoU) with Haryana Power Purchase Centre (HPPC), which expressed its interest to purchase 800 megawatts (MW) of power from ‘Mahanadi Basin Power Ltd’ (MBPL) a wholly-owned subsidiary of Mahanadi Coalfields Limited (MCL).
MCL is the highest coal producing arm of Coal India that operates in Odisha, according to the public sector unit.
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.
India plans to continue expanding its coal production capacity beyond the stated target of doubling it by 2030, prioritizing its needs over mounting global pressure to cut the use of fossil fuels.
Also read: Exclusive: Coal push may continue even after doubling capacity by 2030, says Pralhad Joshi
Last month, Minister for Coal, Mines and Parliamentary Affairs, Pralhad Joshi, told Moneycontrol that the government will continue increasing coal production even beyond 2030 given the steep surge in the country’s power demand projected for the coming years.
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