Nabha Power signs fuel supply agreement with NCL


DW BUREAU / Patiala Nabha Power Limited, which owns and operates 2x700 MW Rajpura Thermal Power Plant, has signed the fuel supply agreement for coal supply from Northern Coalfields Limited (NCL), that will result in financial benefits to the Punjab State Power Corporation Limited (PSPCL), as it will cut down the cost of power generation by reducing coal transportation charges. The coal transportation constitutes around 60% of the total landed coal cost in the state of Punjab, as the coal mines are located more than 1000 kms away. In May 2018, the Union Ministry of Coal had issued guidelines for the transfer of coal linkage of thermal plants from one coal company to another in order to reduce the landed coal cost. The transfer of 2.464 million tonnes per annum of coal from South Eastern Coalfields (SECL) to NCL for NPL was recommended by Central Electricity Authority (CEA). Chairman of Nabha Power DK Sen said, "We are happy that the transfer of coal linkage to NCL has been successfully completed with the support of PSPCL and subsequent approval of supplementary Power Purchase Agreement (PPA) by Punjab State Electricity Regulatory Commission (PSERC)." "NPL is the first thermal plant in the state that will bring down the cost of power generation by reducing the landed fuel cost, which in turn would result in financial benefits to PSPCL and people of Punjab. This will also enable Nabha Power in meeting its continued commitment towards the state of Punjab to provide the reliable power at the lowest cost within Punjab state," added Sen. Nabha Power's Rajpura plant is one of the most fuel-efficient plants in the country. Nabha Power Limited was ranked among the top ten plants in the country based on the plant load factors (PLF) during the peak summer season. (


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