The recent guidelines of the ministry of environment and forest may hinder power generation from ultra mega power projects (UMPPs) in India using coal from Carmichael project in Australia.
According to the ministry guidelines, issued on February 5, a maximum ash content of 12 per cent would be allowed to be used in coal-fired UMPPs.
However, the coal mined from the project in Australia by the Gautam Adani-promoted Adani Group is expected to have ash content of more than the stipulated percentage.
The ash content expected in the coal from the Carmichael project in Queensland is 25 per cent that would require minimal washing, according to Adani Mining, the subsidiary of Adani Group.
The environmental clearance granted to the UMPPs in India would be valid only if they comply with the coal quality parameters indicated, the minstry said in a memorandum.
But this coal can be used for non-UMPP power stations. While the country aims to set up 16 power projects with 4,000 mw or more capacity, four of them have been awarded and of this two are based on imported coal.
Adani Enterprises sees supply from Queensland coal resources as key to meeting its target of generating 20,000 mw from its power plants by 2020.
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