Captive power plants cry foul over Coal India’s allocation policy

Captive power plant ( CPP) owners are crying foul over Coal India’s allocation policy and complain they get negligible supply at unfairly high prices, causing huge losses to the industry.

They allege that when CIL revised prices of coal in February 2012, it introduced differential pricing system for CPPs and independent power producers. The new pricing mechanism has made coal 30-40 per cent costlier for captive units.

“The price differentiation created by CIL against CPPs is discriminatory and goes against the various policies of the government including the national coal distribution policy, 2007 (NCDP) which calls for ‘equitable distribution’ of nationalised resource,” said Rajiv Agrawal, secretary, Indian captive power producers association.

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