WCL enters into coal supply agreement with Mahagenco

NAGPUR: Western Coalfields Limited (WCL) has entered into a coal supply agreement on negotiated price basis with its major consumer Maharashtra Electricity Generation Company Ltd (Mahagenco) for yet another opencast project `Junad' (0.6 million tonnes) in north Wani area.

The agreement was signed by WCL Chairman cum Managing Director D C Garg and Managing Director of Mahagenco Ajoy Mehta recently.

WCL Director (operations) K K Sharan, Director (finance) Irawati Dani, Director Project B K Saxena and Mahagenco Director operation M R Shelar, CGM (fuel) S P Patil were present on the occasion, a WCL release said on Monday.

WCL already has a coal supply agreement on negotiated price basis in respect to five coal projects, Adasa (9.21 mt), Kolgaon OC (0.40 mt), Bhatadi OC (0.65 mt), Durgapur (2.00 mt) and Waghoda UG (0.39 mt).

Barring Waghoda, WCL was supplying coal from these mines. Consumers will also benefited by such agreement as it ensures uninterrupted supply of assured quantity and quality from the producing company, it said.

WCL's new projects are unviable and as such the company has been continuously trying for negotiated price basis agreement to start a new projects in mutual interest of both the parties, the release added.