Automatic transfer of coal supplies from old to new power plants allowed
In view of the multifold benefits such as better efficiency, lower emissions and optimization of land and water usage of super critical power units, letters of coal supply assurances or supply contracts will now be automatically transferred to super critical plants from old facilities that they replace.
This policy, notified by the coal ministry on Thursday, however, will be applicable only to plants set up prior to 2009 in the public sector.
These have to be plants that have been granted long-term supply contracts or letter of assurances by Coal India.
Super critical capacities are upwards of 600 mw and can technically be as much as 1000 mw.
Such units consume relatively less coal per unit of power generated, resulting in lesser release of greenhouse gas, although they are a tad costlier than the conventional 500 mw units.
The government has also assured that if the capacity of the new super critical plant is higher than the old plant, additional coal may be supplied subject to availability.
Automatic transfer of coal supply and letter of assurance shall be permissible only when the new plant is set up within the state in which the old plant was located.
Old unit which has completed its useful life and is being replaced needs to be retired in a phased manner.