Coal Supply

The Group has a fuel supply agreement with Mahanadi Coalfields Ltd. to supply 235,000 TPA of coal from the Talcher mines of MCL for a period of five years from August 2011 which will automatically be renewed every five years thereafter, provided the plant is still in operation. This fuel supply agreement provides sufficient fuel for the capacity authorised under Phase I (45MW). For the balance 55 MW FPL has applied for linkage coal which is expected to allotted shortly. In the interim FPL has signed a FSA with K.R.Enterprises for supply of minimum of 125,000 metric tonnes and a maximum quantity of 250,000 metric tonnes for a period of one year commencing on 29 September 2011.