NTPC has offered to financially team up with Singareni Collieries Co Ltd (SCCL) to jointly develop some of the latter's viable mines in Andhra Pradesh. The power producer is planning to pick up coal assets to fuel its expansion.

The offer was made to the Andhra Pradesh Chief Minister, Mr Kiran Kumar Reddy, by Mr Arup Roy Choudury, NTPC Chairman, during a meeting here recently in which Mr S. Narsing Rao, SCCL CMD, was present.

NTPC has offered to bring in investments if SCCL is willing to identify viable mines that can be jointly developed.

“We have received an informal proposal from NTPC. However, we have conveyed that as of now there are no viable mines that can be jointly developed,” Mr S. Narsing Rao told Business Line.

Power synergy

SCCL, which has a turnover of over Rs 8,936 crore, has lined up a capital expenditure of Rs 11,500 crore for the Twelfth Plan. This includes Rs 3,500 crore for expansion of mining capacity and Rs 7,000 crore for a Greenfield power plant in the State. NTPC is a consultant for SCCL for the proposed coal-fired power plant and possibly sees synergies while executing the project.

Mr Rao said the company has been supplying additional coal to NTPC to meet the requirement of its Ramagundam and Simhadri stations in the State. “As per the original coal linkage, we are to supply 10.02 mt of coal to NTPC's Simhadri unit, but this fiscal we will end up supplying 20 per cent more, that is about 12 mt,” he said.

NTPC's Simhadri station has coal linkage from Mahanadi, but due to disruptions in supplies, SCCL had made additional provisions to meet the power unit's requirements.

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