Mudajaya seals coal supply deal with Indian firm

Mudajaya seals coal supply deal with Indian firm
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Monday, 09 September 2013 18:29

KUALA LUMPUR (Sept 9): CONSTRUCTION []-cum-energy player MUDAJAYA GROUP BHD []’s wholly-owned subsidiary RKM Powergen Pvt Ltd, has signed an agreement with India-based South Eastern Coalfields Ltd for the supply of coal for the next 20 years.

The agreement is for the supply of coal for Phase I of the 4x360MW coal-fired thermal power plant at Ucchpinda, Chhattisgarh of India, which consists of 1x360MW installed capacity of the power station, according to a filing on Bursa today.

“The agreement shall remain in force until the end of 20 years period,” it said, adding the agreement can be extended upon mutual agreement by both parties or of the life of the power plant, whichever is earlier.

The deal will include the annual contracted quantity of coal supply of 1,690,000 MT as per original letter of assurance issued earlier by South Eastern, it noted, while the delivered price of coal for coal supplies shall be the sum of base price.

Other charges and statutory charges, as applicable at the time of delivery of the coal will be at the prevailing price of approximately USD25/MT, it added.

The company said the mode of transport is by rail and the type of coal is Grade F (Gross Calorific Value 3,300 - 3600Kcal/Kg).