Andhra Pradesh Central Power Distribution Corporation Limited will purchase 28.8 million units of power a day from the 2x600 Mw SCCL Thermal Power Plant, which is being set up by state-owned Singareni Colliers Company Limited (SCCL).
The two entered into a power purchase agreement to this effect in the presence of chief minister K Rosaiah here on Wednesday.
SCCL is setting up the pit-head power plant at Pegadapalli in Adilabad district at a cost of Rs 5,685 crore. While 30 per cent of the project cost would be funded through internal accruals, the remaining 70 per cent would be sourced as debt from financial institutions.
The company stated that it was currently in possession of the land earmarked for the power plant and preliminary works had commenced. The required boilers, turbines and generators would be sourced from BHEL and the two units would be commissioned by 2013.
On the other hand, according to a press release, Transmission Corporation of AP is making arrangement for connecting SCCL power to the grid by laying a 160-kilometre, 400 Kv high transmission line from Pegadapally to Gajwel in Medak district.
SCCL chairman and managing director S Narsing Rao today presented a cheque for Rs 35.42 crore to the chief minister towards dividend payment to the state government for the year 2009-10. The company, which is a joint venture of the state and the central governments, would also pay a dividend of Rs 33.9 crore to the coal ministry.
Last year, SCCL produced 50.4 million tonnes (mt) of coal registering a growth of 13 per cent over the previous year. It has set a production target of 51.3 mt for the current year.
In 2009-10, the company’s turnover and net profit stood at Rs 7,825 crore and Rs 268 crore respectively. It has been paying dividend consecutively for the past seven years.