State run National Thermal Power Company, which is looking for coal to produce power after the coal ministry cancelled five coal blocks allotted to it, is all set to buy 5 million tonnes of coal from Singareni Collieries Company by shelling out INR 814 extra per tonne.

According to NTPC, it entered into an agreement with SCCL, an Andhra Pradesh government owned coal mining company, for coal supply in addition to normal supply.

A company statement said that "Under the MoU, SCCL would supply 5 million tonnes of additional coal to NTPC stations for a period of one year from July 1st 2011, to June 30th 2012, in addition to supply of 10.2 million tonnes of coal per annum under the existing long term fuel supply agreement with the thermal power major.”

A senior official of SCCL told PTI that "We will charge INR 814 extra per tonne from NTPC on the long term contract price of INR 600 to INR 1900 per tonne.”

(Sourced from PTI)