The Union coal ministry has approved Punjab government’s request to rationalise the coal linkage of Nabha Power Limited (NPL) by allowing supply from Northern Coal Limited, than from the present supplier, South Eastern Coalfields Limited (SECL). With the decision, the Punjab State Power Corporation Limited (PSPCL) will save 20 paise per unit in electricity generation from the thermal plant.
This saving will be generated as the distance between the raw material and the user plant has decreased; NCL has coal mines in Uttar Pradesh, Madhya Pradesh and other nearby states, as compared to the SECL’s mines in the deep south of the country.
As of now, NPL has been sourcing coal from different Coal India Limited (CIL) subsidiaries under a Fuel Supply Agreement FSA with the SECL.
