Completed power plants to get assured supply from Coal India.

 Power plants, at least 30 of them, which do not have a firm coal supply assurance and are ready to be commissioned, will be given the commodity by Coal India, according to a government panel’s decision. 

Coal will be diverted to these plants from old projects that have firm assurances of supply but not been able to meet their commissioning deadline or have not been able to sign power purchase agreements with utilities. The decision was taken recently at a meeting of the Linkage Committee, a panel that decides on coal allocation to power plants. 

The capacity of the first 15 projects totals about 12.64 MW, requiring some 58 million tonnes of coal, according to the commission. They will be operational this year, well within its original deadlines. There are some 60,000 MW worth of projects that received firm assurances during 2013-14 from Coal India. 

According to the ministry of power, a few of these projects either do not have the required power purchase agreement or have failed to meet deadline and are beyond schedule. Coal meant for these projects will now be offered to the projects that have already met their target of commissioning. 

The ministry has decided to reprioritise the entire list of these 60,000 MW as well as the new set of projects that will come on stream this year. There is also another list of 15 projects of 10,765 MW capacity that have been given ad-hoc coal supply assurances through tapering linkage. A tapering linkage is the contract to supply coal to companies that have also been offered coal blocks. The volume of coal supplied will reduce each year as the company’s own coal mines starts to produce.

Source: Economic Times

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