NTPC, CIL to float SPV to mine coal, build power plants
NTPC Limited and Coal India Limited (CIL) will sign an agreement soon to float a joint venture Special Purpose Vehicle (SPV) to build two power plants of 1500 Megawatts.
By PTI |
NEW DELHI: NTPC Limited and Coal India Limited (CIL) will sign an agreement soon to float a joint venture Special Purpose Vehicle (SPV) to build two power plants of 1500 Megawatts and develop two coal mines in Jharkhand at an estimated cost of Rs 8,000 crore.
"NTPC and CIL will sign a Memorandum of Understanding (MoU) to float a SPV to build two integrated power plants at a cost of Rs 7,500 and develop two coal mines in Jharkhand at an estimated cost of Rs 500 crore. The draft MoU will be given final shape in the coming days," a top Coal Ministry official said.
He said, in the equity stake of both the companies would be on a 50:50 basis and the power produced from these plants would be commercially sold, mostly through Power Purchase Agreements (PPAs).
"NTPC and CIL have been allocated two coal mines-Brahmini and Chichro Patrimal, which together have a thermal coal reserves to the tune of a whopping 2000 million tonnes and the reserves are expected to last for at least 30 years," he said.
The official, however, did not say whether the proposed SPV would be listed but pointed out that it would be decided in due course of time. "We think that resources are not a problem and they can be generated as and when required.
"This is a sort of forward integration for CIL and rightfully so because it has the requisite expertise to mine the coal from these blocks," the official pointed out.
"NTPC and CIL will sign a Memorandum of Understanding (MoU) to float a SPV to build two integrated power plants at a cost of Rs 7,500 and develop two coal mines in Jharkhand at an estimated cost of Rs 500 crore. The draft MoU will be given final shape in the coming days," a top Coal Ministry official said.
He said, in the equity stake of both the companies would be on a 50:50 basis and the power produced from these plants would be commercially sold, mostly through Power Purchase Agreements (PPAs).
"NTPC and CIL have been allocated two coal mines-Brahmini and Chichro Patrimal, which together have a thermal coal reserves to the tune of a whopping 2000 million tonnes and the reserves are expected to last for at least 30 years," he said.
The official, however, did not say whether the proposed SPV would be listed but pointed out that it would be decided in due course of time. "We think that resources are not a problem and they can be generated as and when required.
"This is a sort of forward integration for CIL and rightfully so because it has the requisite expertise to mine the coal from these blocks," the official pointed out.
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