Damodar Valley Corporation (DVC) is learnt to have arrived at a consensus with Coal India (CIL) on various elements of the fuel supply agreement (FSA) and the pact may be signed soon between both the state-run firms soon.
Once the pact is signed, DVC would source 25 million tonne of coal from CIL from the present 12.5 million tonne per annum. Total links required by DVC in the 12th Plan period is 50 million tonne per annum, RN Sen, Chairman of DVC said.
Both the firms would soon settle the issue of joint coal sampling at loading sites, reports indicate. Sen said the eastern region power committee might move the Central Electricity Regulatory Commission to seek sampling of coal at both loading and dumping sites.
Recently, state-run thermal power major NTPC settled all the issues with CIL on FSA.
For DVC, the FSA with CIL would benefit its over 3,500 megawatt (mw) capacity. Among the power plants that would seek fuel links are Durgapur Steel (2x500 mw), Mejia (2x500 mw), Chandrapura (2x250 mw) and Raghunathpur phase 2 (2x660 mw).
According to Sen, phase 2 of the Raghunathpur plant in Purulia is expected to achieve financial closure by July. Sen said he did not see any impediment in the financial closure despite the negative outlook of bankers for the sector.