Western Coalfields offers additional coal to various power gencos at cheaper price
The company has the advantage of having its mining operation in central India
Western Coalfields Ltd (WCL) has offered additional quantity of coal to various power generation companies of central, west and south regions at a cheaper landed price.
WCL, a subsidiary of Coal India Ltd, said the move will not only help power generation companies (gencos) minimise their cost to cut power tariffs, but will also reduce import of thermal coal.
The company has the advantage of having its mining operation in central India, it added.
This helps consumers of central, west and south India to get cheaper landed coal due to advantage in lesser railway freight in comparison to other coal companies of CIL located in the eastern part of the country.
"With locational advantage and phenomenal growth in production, WCL has offered 20-25 million tonnes of coal to state gencos, NTPC and other independent power producers (IPPs) by swapping their linkage from other coal companies. This will be in addition to their existing linkage quantity with WCL," it said.
WCL further said that in a series of detailed discussion during the past two days with WCL and state gencos of Maharashtra, Madhya Pradesh, Karnataka, Gujarat, followed by NTPC and IPPs, all parameters of existing linkage and future swapping have been discussed along with financial benefit to gencos.
"Efforts will be made to complete the swapping procedure at the earliest so that WCL may start dispatching the additional quantity by October 2020," WCL said.
It added that the additional quantity offered for swapping ranges from 3-6 million tonnes to various gencos depending on their requirement. "The quantity will further increase in future subject to availability of more surplus coal."