Cabinet note soon on linkage auction for power plants: Source

The Coal Ministry will soon move a draft Cabinet note for auctioning linkages for the dry fuel to the power sector.

This assumes significance in the backdrop of the government’s commitment to provide affordable round-the-clock electricity to all.

“The Coal Ministry will soon seek suggestions of various ministries including power on the draft Cabinet Committee on Economic Affairs (CCEA) note for auction of coal linkages to the power plants,” a source said.

Last month, CCEA had approved allocation of coal linkages for non-regulated sector only through auction. Sectors included were cement, steel/sponge iron, aluminium, and others (excluding fertiliser, urea).

Coal and Power Minister Piyush Goyal has said that the framework attempts to make coal available in a fair manner to end-users.

“Proposed auction methodology leads to price through a market mechanism; it does not seek to maximise revenue”, the minister had said, adding, “it ensures that all market participants of non-regulated sector have a fair chance to coal linkage, irrespective of size”.

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