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Rs 36,000 cr worth of power projects stuck for coal

25 Jul 2014

Power projects worth around Rs. 36,150 crore and a generation capacity of 7,230 MW are stranded due to coal shortage, Piyush Goyal, minister for coal, power and renewable energy, said in the Lok Sabha on Thursday.

“As far as coal-based thermal power plants are concerned, a capacity of 7,230 MW is already commissioned but having no coal supply. Considering an indicative cost of Rs. 5 crore per MW, an investment of about Rs. 36,150 crore has been made in the execution of these projects,” Goyal said in a written reply to a question in the lower house.

This 7,230 MW capacity is spread across 12 projects.

To address the issue of coal shortages, the power ministry has initiated certain steps including issuance of advisory to import the fuel.

As per the advisory, the cost of imported coal would be made a pass through on case to case basis by regulators to the extent of shortfall in the quantity indicated in the LoA (letter of assurance) or fuel supply agreement (FSA).
 
In a separate reply, Goyal said the government is “making efforts to make adequate fuel available for power generation through coal companies”

Source: Hindustan Times