Coal news and updates

No fresh coal linkages to new power plants of pvt cos

December 10: The Minister of State for Coal Piyush Goyal has said there is no proposal as of now to grant fresh linkages to new and upcoming power plants of private companies.

Replying to a question in the Rajya Sabha, Goyal said, “At present, there is no proposal to provide fresh coal linkages to private companies for new and upcoming projects.”

He said as per the New Coal Distribution Policy (NCDP), 2007, the Standing Linkage Committee (Long-Term) is authorised to recommend the letters of assurance (LoAs) for supply of coal. Based on the SLC (LT)’s recommendation, so far, 177 LoAs have been issued to various power plants, including those of the central/state government as well as IPPs (independent power producers, ie, private companies) covering capacity of 108,000 MW.

Out of this 1,08,000 MW capacity, the competent authority in 2013 had approved signing of fuel supply agreements (FSAs) in respect of 78,000 MW capacity power plants which have been commissioned or are likely to be commissioned by March 31, 2015, he said.

It was further decided that coal may also be supplied to power plants of 4,660 MW capacity and other similarly placed power plants that do not have any fuel linkage subject to the availability of coal and on the condition that such supplies would not adversely impact the availability of coal for the identified plants of 78,000 MW capacity as per the approval accorded for LoA holders.

A Presidential Directive to this effect was issued to Coal India Limited (CIL) on July 17, 2013, but the power projects of the remaining capacity of 30,000 MW are yet to be authorised for signing of FSAs, the minister said.

He said keeping in view the negative coal balance reported by subsidiary coal companies of CIL, new linkages/letters of assurance (LoA) have not been granted to any of the sectors since 2010.