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Web Exclusive | April 2013

Coal linkage to 16k mw power plants not possible: Govt

The Union Coal Ministry has conveyed to an Inter-Ministerial panel that it would not be possible to provide fossil fuel to power plants having an aggregate capacity of 16,000 mw due to coal shortages. Sources said that the Coal Ministry is of the view that due to coal shortages it would not provide linkages to those power plants having an aggregate capacity of 16,000 mw, which are at advanced stages of commissioning, a source close to the development said.

Following a direction from the Cabinet Committee on Economic Affairs (CCEA), the Coal Ministry had set up an inter-ministerial panel to look into coal linkages of 16,000 mw power plants. The IMC, chaired by Coal Secretary SK Srivastava, has members from the Power, Steel, Railways and Law Ministries.

A total of 143 fuel supply pacts are to be signed by Coal India (CIL) till 2014-15 in respect of identified power projects of 60,000 mw capacity, which have been assured coal supply during the 12th Five-Year Plan period (2012-17), according to an official document. Of these, 92 FSAs were to be signed by March-end. So far, 56 power companies have entered into fuel supply agreements (FSA) with CIL, which accounts for over 80 per cent of the domestic coal production.

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