Haryana government signs MoU to buy power from Coal India's proposed plan

State-owned Coal India Ltd (CIL) on Thursday said the Haryana government has evinced interest in buying electricity from the company's proposed power plant in Odisha.

Haryana is keen to ensure electricity availability to meet the expanding energy demand of the state.

"Coal India Ltd (CIL) on Thursday signed a Memorandum of Understanding (MoU) with Haryana Power Purchase Centre which expressed its interest to purchase 800 MW of power from ‘Mahanadi Basin Power Ltd' (MBPL) a wholly-owned subsidiary of Mahanadi Coalfields Limited (MCL)," CIL said in a statement.

As per the MoU, power will be purchased under Section-62 of the Electricity Act, 2003.

"This refers to determining the power tariff in accordance with the provisions of the act, by the appropriate commission, for supply of electricity by a generating company to a distribution licensee," it said.

The MoU was inked in the presence of Haryana Chief Minister Manohar Lal Khattar.

CIL is setting up a 4,000 MW ultra-supercritical thermal power plant, in two phases in Sundargarh district of Odisha, through MBPL.

Last month, the Cabinet Committee on Economic Affairs gave its nod for setting up 1,600 MW capacity plant in the first phase.

CIL's upcoming thermal power plants will be based on ultra super-critical technology which will have comparatively lesser carbon footprint than the conventional coal-based plants.

Since these will be erected near the pitheads, there would be benefits like optimised landed coal cost, low transit loss, higher plant load factor and reduced adverse impact on environment, among others.

CIL is entering into diversification ventures where setting up of coal-based pithead power plants features prominently.

Coal India accounts for over 80 per cent of the domestic coal output.