Coal News We love to talk!
To ensure continued fuel supply to coal-based power plants, the Ministry of Power has floated a Cabinet note seeking approval to meet requirements of generators whose linked blocks are to be de-allocated by March 31, 2015.
The Cabinet note, seen by BusinessLine , states the Ministry has sought approval to meet 90 per cent of coal requirement of such plants by signing fuel supply agreements to keep them running at 85 per cent plant load factor. This would include plants constructed after 2009. There is also a proposal to convert tapering linkages of three years into full time linkages of 20 years.
The note recommends that the Ministry of Coal should sign fuel supply agreement to meet the requirements of projects aggregating 4,700 MW.
The proposal does not cover plants where only a Letter of Assurance has been signed.
For such plants, the Power Ministry proposes to allow imported or e-auctioned coal with the pass through in costs to be determined at the appropriate electricity commission. In the event of a shortfall in coal supply, the note recommends pooled prices of domestic and international coal. The proposals, if accepted by the Cabinet Committee on Economic Affairs, is expected to benefit 25,000 MW of capacity in the private sector and help electricity generators like Adani Power, Tata Power, Jindal Steel and Power Ltd, Reliance Power, Essar, GMR, GVK, among others.
If accepted, the move will benefit Adani Power, Tata Power, Reliance, Essar among others
- Reopening of Badarpur power plant a setback: Greenpeace Read more
- NDA moves a step closer to coal auctions Read more
- Adani plans to begin extracting coal from Carmichael project in 2020-21 Read more
- Power cos may be pushed to hike tariff Read more
- Longer tax holiday, higher input costs for power players Read more
- Thermal Power plants worried about Indonesian coal curbs Read more
- Tata Power ties up with Russian fund Read more
- BP-RIL tie-up likely for fuel retail venture Read more
- Ramagundam NTPC Ltd. achieves yet another landmark Read more
- Oommen Chandy to take legal steps for getting solar scam probe report Read more