Coal news and updates

GMR Group has asked Coal Minister Sriprakash Jaiswal to take up with CCEA the issue of providing fuel for its 1370 MW supercritical power project in Chhattisgarh, involving a cost of Rs 8,290 crore, which is scheduled to start commercial operations next year.

 

"The Cabinet Committee on Economic Affairs (CCEA) on June 21, 2013 directed that coal may be supplied to power plants of 4660 MW and other similarly placed power plants that do not have any fuel linkage but are likely to be commissioned by March 31, 2015, having long-term PPAs and a high bank exposure," GMR Group said in a letter to Jaiswal.

 

"Our Chhattisgarh project is one of the plants under this category of similarly placed power plants. Hence we request you to take up this matter with CCEA for considering our plant under this category and to enter into fuel supply agreements (FSAs) similar to 78,000 MWs of power projects immediately," the letter said.

 

GMR Group is setting up 1370 MW coal-based supercritical thermal power project at Raikheda in Chhattisgarh. The project is in advanced stage of commissioning with 89 per cent of project work completed and scheduled to achieve commercial operation by April 2014, the letter said.

 

"Out of the estimated project cost of Rs 8,290 crore, we have already spent over Rs 7,900 crore which includes Rs 5,250 crore of debt fund from banks, towards the implementation of the project. The company entered into long-term power purchase agreement for supply of power to the extent of 35 per cent of the capacity, with the Chhattisgarh state government entity," the letter added.

 

"Further, we wish to bring to your kind notice that the power plant can participate in long term case-1 bids for sale of power only if they have long-term coal allocation. Hence it is important that we are allocated domestic coal availability so as to enable us to participate in long term case-1 bids," GMR Group said.

 

"We sincerely request you to help us at this critical juncture where huge investments have been done, and help us to get coal allocation and enter into FSA with Coal IndiaBSE -0.33 % at the earliest," it added. 

 

 

Source: PTI