Coal news and updates

APGENCO told to explore JV/SPV with TGENCO

August 4: Andhra Pradesh Power Generation Corporation (APGENCO) will have to explore the probability of forming a joint venture/SPV with its counterpart, TGENCO, of the newly- formed government of Telengana for sharing of coal for the end-use plants located in the latter, a release by the Ministry of Coal (MoC) has indicated.

A meet on coal allocation to government companies/corporations and CPSUs under Rule 4 of the Auction by Competitive Bidding of Coal Mines Rules, 2012 has been slated on August 14, which will review the current status of formation of special purpose vehicles/joint ventures amongst the state government companies/corporations that have been allotted coal blocks jointly for the end-use, ie, power.

In this context, it may be recalled, the government had decided to allocate 701 million ton (mt) of geological coal reserves from the Sarapal-Nuapara coal block in Odisha to APGENCO for the following end-use plants:

• Dr NTTPS Stage V (800 MW) Ibrahimpatnam, Vijayawada
• KTPS Stage VII, (800 MW), Kothagudem, Khammam district
• KTTP Stage III, (800 MW), Ghampur (M) Warangal district
• Sattapully TPS (600 MW), Vemsur (M) Khammam, and
• Srikakulam TPS (2,400 MW), Palasa, Srikakulam district.

Since the erstwhile state of Andhra Pradesh has been divided into two with the creation of Telengana, the above end-use projects of APGENCO are now spread into both states.

Consequently, APGENCO will now have to explore the probability of forming a joint venture/SPV with its counterpart, TGENCO, of the government of Telengana, for sharing of coal for the end-use plants located in the newly-formed state, said the release.