(EnergyAsia, June 28 2013, Friday) — Singapore’s Sembcorp Industries said its joint venture firm, Thermal Powertech Corporation India (TPCIL), has secured a 20-year deal for coal supply to its 1,320MW power plant now under construction in Andhra Pradesh state.

Mahanadi Coal Fields, a subsidiary of state-owned Coal India, has agreed to provide an annual supply of 2.1 million tonnes of domestic coal from the second half of 2014 when the power plant comes onstream.

In February 2012, TPCIL secured its first coal supply contract with Indonesia’s PT Bayan Resources for one million tonnes per year for 10 years.

“Together, both contracts will supply approximately 60% of the plant’s total coal requirement. TPCIL is currently working with the relevant authorities in India to secure another fuel supply agreement for the plant by the later part of this year,” said Sembcorp, which owns 49% of TPCIL through subsidiary Sembcorp Utilities.

Gayatri Energy Ventures, a wholly owned subsidiary of India’s Gayatri Projects, owns the majority 51% of TPCIL, which is building the plant in Krishnapatnam in Andhra Pradesh’s SPSR Nellore District.

Sembcorp said the latest coal supply agreement will enable TPCIL to supply power to thousands of consumers in Andhra Pradesh and play an essential role in helping to reduce the severe shortage of power supply in the state and southern India.

The plant will also apply supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.

According to TPCIL, the project will be implemented in two phases, with the first unit of 660 megawatts to start up by mid-2014, and the second 660MW unit about six months later.