Published On : Mon, Feb 29th, 2016

Mahagenco may reap profit of Rs 421 crore if it buys coal from WCL: Bawankule

Mahagenco, WCL to jointly set up four coal washeries for supplying coal of highest quality to electricity generating plants in Vidarbha.

Mahagenco and WCLNagpur: Mahagenco and Western Coalfields Limited (WCL) have decided to jointly set up four coal washeries in Maharashtra to supply coal of highest quality to electricity generating plants in the state. “The process to start these four coal washeries will soon be initiated and completed within one and half years,” declared the Energy Minister Chandrashekhar Bawankule here on Monday and added that the Mahagenco will reap a profit of Rs 421 crore if it purchases coal from the WCL.

A high-level meeting of senior WCL and Mahagenco officials was held today at WCL Headquarters for facilitating coordination and important decisions between the two companies. The decisions taken in the meeting are necessary for reducing the power tariff. The WCL Chairman-cum-Managing Director Rajiv Ranjan Mishra did a presentation on WCL’s steady progress towards a profit company from the loss-making company since the past two years. The presentation depicted how Mahagenco sustains on WCL Nagpur coal and the profit it would earn.

If WCL and Mahagenco set up coal washeries jointly the expenditure will be reduced in greater proportions. The washeries will be set up with equal share of Rs 150 crore each by Mahagenco and WCL. “WCL is ready to supply coal to all power generating plants in Vidarbha. If Mahagenco purchases coal from WCL it will earn a profit of Rs 421 crore. We are ready to supply 30 lakh metric tons of coal this year and the quantity will be increased by 5 lakh metric tons every year,” said Mishra. Subsequently, Bawankule decided to stop coal purchasing from Mahanadi Coal Mines and purchase it from WCL.

WCL water:
In another decision the WCL said it is ready to provide water available with it to Mahagenco’s power plants near Nagpur free of cost. A total of six crore gallons of water is always available with WCL Considering the possibility of no water supply from Pench Project in future, Bawankule directed the Mahagenco to use the water provided by WCL free of cost. Khaparkheda plant has been asked to fetch water from Bina and Bhanegaon Shingri mines of WCL for electricity generation. Similarly, Chandrapur, Khaparkheda and Koradi plants will also be provided water by WCL.