The Singareni Collieries Company Ltd and Generation Corporation of Andhra Pradesh Ltd (AP Genco) have renewed fuel supply agreement for supply of coal for five power projects.

According to the linkages granted by the Ministry of Coal, Government of India, the State-owned Singareni has been supplying coal to thermal power stations of AP Genco. The arrangement now is for supply of 122.40 lakh tonne as against 100.80 lakh tonne.

The coal linkage is of 21.6 lakh tonne is for Kakatiya thermal power plant at Bhoopalapalli, which has boosted the linkage size.

With this fuel supply agreement, AP Genco will be able to generate 2,620 MW. The contract period is for 20 years and the terms will be reviewed with Singareni every five years.

According to a statement, during 2011-12, Singareni supplied 187.38 lakh tonne to AP Genco against the annual contract quantity of 122.40 lakh tonne representing 153 per cent.

In the current financial year, Singareni has thus far supplied 77.68 lakh tonne against contracted 45.07 lakh tonne representing 172 per cent.

The Singareni coal mine supply is compensating for the shortfall of supplies from Coal India to AP Genco power stations.

The fuel supply agreement was signed by Suresh, Chief General Manager, Marketing, on behalf of Singareni and T. Prabhakar Rao, Director (Coal), AP Genco, in the presence of Suthirtha Bhattacharya, Chairman of Singareni, K. Vijayannad, Managing Director AP Genco.

Singareni supplies coal to Kothagudem thermal power station, Muddanoor and other projects in the State.

rishikumar.vundi @thehindu.co.in

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