Coal India Ltd has signed a memorandum of understanding (MoU) with Haryana Power Purchase Centre for supply of 800 megawatt (MW) of electricity from Mahanadi Basin Power Ltd.

This agreement lays the foundation for a future power purchase agreement, and will help Haryana meet its rising energy demand, Coal India said in a statement.

“As per the MoU framework, power purchase will be under Section-62 of the Electricity Act, 2003. This refers to determining the power tariff in accordance with the provisions of the act, by the appropriate commission, for supply of electricity by a generating company to a distribution licensee," said the statement.

Mahanadi Basin Power is a wholly-owned subsidiary of Mahanadi Coalfields Ltd, which operates in Odisha and is the leading coal-producing company under Coal India.