Monday, 20 July 2015

CESC's Chandrapur project rejoices by Coal Ministry's decision for coal supply

The case of re-installing of coal supplies to the plan has been favourably considered in a meeting held on Friday, also following a directive to Coal India.


CESC
Kolkata-based CESC, finally recieved  a shot at revival by coal ministry for its power plant in Chandrapur in Maharashtra. The case of re-installing of coal supplies to the plan has been favourably considered in a meeting held on Friday, also following a directive to Coal India.

Chandrapur  project is a 600 megawatt power plant and has been suffering since 2009 due to change in the policy of government in April on unexceptional change of ownership of power plants.

From the 600 megawatt (MW) needed, the company was able to initiate a tie up of only 100MW with Tamil Nadu-based public sector company TANGEDCO in a long-term agreements, while negotiation for the rest continued.

Also if the desicion implements it would effect all the other deals happening in future, leading to consolidation of the power sector through mergers and acquisitions.

CESC has invested in around  Rs 3,670 crore into the project, which includes loan of  Rs 2,600 crore from Indian commercial banks, and if the delay in coal supply continues it would majorily torture the company's financial situation.

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