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News Brief | January 2016

Mahagenco to source affordable coal for private power plants

The state government has decided to give a helping hand to private power plants by making Mahagenco source coal for them. These plants will sign agreement with the state-run company and sell power to it. Mahagenco will in turn sell this power to its sole consumer MSEDCL. A government resolution (GR) in this regard is expected to be issued soon.

About 4,000MW capacity plants in private sector are either lying idle or partially utilised. SC has cancelled the allocations of their coal blocks. However, Mahagenco has been allocated a major block in Chhattisgarh. So we will use that coal for the private plants. Mahagenco will sign PPAs with these plants for buying power from them. We will only entertain those companies which agree to supply power at affordable rates. This way MSEDCL will get cheap power and it will help in bringing down the power tariff," energy minister Chandrashekhar Bawankule said.

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