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SEP 18 2014

Linkage Committee to meet next week to review the status of existing coal linkages

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 18th SEP 2014

An inter-ministerial panel will review the status of existing coal linkages to the power sector.

"The meeting of the Standing Linkage Committee (SLC) (Long-Term) for power to review the status of existing coal linkages/LoAs and other related matters will be held on September 22," according to a Coal Ministry memorandum.

It, however, said that the agenda of the meeting will be intimated in due course.

Finance Minister Arun Jaitley had announced in the Budget 2014-15 that adequate quantity of coal will be provided to power plants that are already commissioned or would be commissioned by March 2015, to unlock dead investments.

The Power Ministry has also moved a draft Cabinet note to ensure coal linkages for power projects which are already commissioned or are likely to be commissioned by March.

The Power Ministry has sought suggestions from various ministries, including coal, finance, law and environment on its draft note that seeks to ensure coal supplies for the thermal power plants, a source close to the development had said earlier.

The source had also said that the approval of the CCEA is also being sought for supply of linkages to the power plants being commissioned after March, 2015 and up to the end of 12th Plan Period, i.e. 2016-17.

These are the power plants which neither have Letter of Assurances nor fuel supply agreements, the source had said.

In June last year, during the CCEA meeting it was decided that state-owned Coal India (CIL), which accounts for over 80 per cent of the domestic coal production, will sign fuel supply agreement for about 78,000 mw capacity for which linkages were earlier granted by way of Letter of Assurance issued by the 'Maharatna' firm.


Finance Coal Coal India Limited Central Electricity Authority 12th Plan Cabinet Committee on Economic Affairs Budget CIL Power coal linkages India

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