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The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) need not depend on import of coal as the Centre has assured a supply of high-quality indigenous coal to substitute the imported coal being used in thermal power stations in the State.
The assurance from the Coal India Limited (CIL) on providing import-substitution coal comes as a shot in the arm for the power utility. It will enable the corporation to cut down its purchase of imported coal and save Rs. 550 crore a year.
A TANGEDCO official said this move followed the deliberations between the Union and State Ministers to chalk out plans for Tamil Nadu joining the UDAY (Ujwal DISCOM Assurance Yojana) scheme in New Delhi on October 21.
At the meeting, officials raised the issue of inferior coal supply and the proposed supply of additional five million tonnes of indigenous coal to substitute imports, he added. After Tamil Nadu assured the Centre that it would join the UDAY scheme, at a subsequent meeting that TANGEDCO officials had with CIL officials in Kolkata on October 24, the latter agreed to supply an additional five million tonnes from Eastern Coal Fields Limited, in addition to the existing quantity under the Fuel Supply Agreement.
TANGEDCO would be get an additional three million tonnes of Indian coal per annum towards import substitution from the Singareni Collieries Company Ltd. as instructed by the Centre.
The power utility has been assured an additional 3 million tonnes of coal from Eastern Coal Fields
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