Hyderabad - Singareni Collieries Company will soon begin supplying coal from its Naini coal block in Odisha to Tamil Nadu Power Generation Corporation (Tamil Nadu Genco).

Under the proposed fuel supply agreement (FSA), SCCL will provide 2.88 million tonnes of G-11 grade coal annually, with the agreement expected to be finalised within the next 10 days. SCCL chairman and managing director N Balram and Tamil Nadu Genco MD M Govind Rao met at Singareni Bhavan on Friday to discuss the coal supply arrangements.

Govind Rao said that their 1,200 MW thermal power plant at Udangudi in Thoothukudi district requires 2.88 million tonnes of G-11 grade coal each year and requested SCCL to meet this requirement. He said that with production at the Naini coal block already underway, coal can be supplied efficiently via rail and waterways.

"This agreement marks a significant step in strengthening the long-standing relationship between SCCL and Tamil Nadu Genco," the company said. SCCL is already supplying 1.75 million tonnes of coal annually to the north Chennai thermal power plant in Tamil Nadu.