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Nabha Power Signs Fuel Supply Agreement with Northern Coalfields Limited

Move to Result in Financial Benefits for PSPCL

Nabha Power Limited, South Eastern Coalfields, SECL, Northern Coalfields Limited, NCL, D. K. Sen, Punjab State Electricity Regulatory Commission, PSERC, Rajpura Thermal Power Plant, Punjab State Power Corporation Limited, PSPCL

Web Admin

Web Admin

5 Dariya News

Patiala , 08 Jan 2022

Nabha Power Limited, which owns and operates 2x700 MW Rajpura Thermal Power Plant, has signed the fuel supply agreement for coal supply from Northern Coalfields Limited (NCL), that will result in financial benefits to the Punjab State Power Corporation Limited (PSPCL), as it will cut down the cost of power generation by reducing coal transportation charges.The coal transportation constitutes around 60% of the total landed coal cost in the state of Punjab, as the coal mines are located more than 1000 Kms away. In May 2018, the Union Ministry of Coal had issued guidelines for the transfer of coal linkage of thermal plants from one coal company to another in order to reduce the landed coal cost. The transfer of 2.464 Million Tonnes per annum  of coal from South Eastern Coalfields (SECL) to NCL for NPL was recommended by Central Electricity Authority (CEA).

Chairman of Nabha Power, Mr D. K. Sen said, “We are happy that the transfer of coal linkage to NCL has been successfully completed with the support of PSPCL and subsequent approval of supplementary Power Purchase Agreement (PPA) by Punjab State Electricity Regulatory Commission (PSERC).”“NPL is the first thermal plant in the state that will bring down the cost of power generation by reducing the landed fuel cost, which in turn would result in financial benefits to PSPCL & people of Punjab. This will also enable Nabha Power in meeting its continued commitment towards the state of Punjab to provide the reliable power at the lowest cost within Punjab state,” Added Mr Sen.  Nabha Power’s Rajpura plant is one of the most fuel-efficient plants in the country. Nabha Power Limited was ranked amongst the top ten plants in the country based on the plant load factors (PLF) during the peak summer season. Also, during the entire paddy season, Nabha had been consistent in generating power with almost 100% availability. Nabha Power also won the best IPP award conferred by IPPAI for three consecutive years 2019, 2020 and 2021 for being the most fuel-efficient and lowest cost power producer. It also bagged the golden peacock award for exceptional social work carried out under its CSR initiatives.

About Nabha Power Limited

Nabha Power Limited (NPL), a wholly owned subsidiary of L&T Power Development Limited has been successfully operating a 2x700 MW supercritical thermal power plant at Rajpura in the state of Punjab since 2014. Efficient and reliable power from NPL forms the backbone of electricity supply to the state. NPL remains on top of the merit order as it is the lowest cost thermal power producer in Punjab, operating at high Plant Load Factor (PLF), which is among the best in the power industry.


Tags: Nabha Power Limited , South Eastern Coalfields , SECL , Northern Coalfields Limited , NCL , D. K. Sen , Punjab State Electricity Regulatory Commission , PSERC , Rajpura Thermal Power Plant , Punjab State Power Corporation Limited , PSPCL



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