ICCL and MCL sign Fuel Supply Agreement
Jun 21, 2002
Internal Press Release

Indian Charge Chrome Ltd (ICCL), a fully integrated ferro alloys producer which is part of the IMFA Group, today announced that it has signed a Fuel Supply Agreement (FSA) with Mahanadi Coal Field Ltd (MCL) for 7.5 lakhs tonnes of coal per annum to be supplied to its power plant in Choudwar. The FSA was signed by Mr S P Mathur, Executive Director (Finance), on behalf of ICCL and by Mr S P Singh, Director (Technical), for MCL and is only the second such agreement to be signed in Odisha.

ICCL operates a 108 mw coal-based captive power plant (CPP) which not only meets the entire requirement of IMFA Group but also supplies surplus generation to the State Grid. Being located in the load centre of Odisha, ICCL's CPP is an important constituent as it acts as a stabilizing influence besides helping to reduce transmission losses.

The efficiency of the stoker-fired boilers depends upon the ultimate heat value (UHV) of the coal being used. Through joint sampling the FSA provides that the price of coal will be linked to the UHV thereby ensuring that ICCL pays on the basis of the quality of coal it receives. MCL on the other hand benefits from having a guaranteed off-take as well as receiving proper value for its product depending upon the quality.

The revenue generation for the State Exchequer will be more than Rs 5.50 crores per annum by way of Royalty, Sales Tax, etc while South Eastern Railways will earn nearly Rs 9 crores every year on account of freight.

For any information relating to IMFA Group or to enquire about a Press Release issued by us please contact:

Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in