The government plans to bar companies that win coal blocks in the upcoming e-auctions from exiting the mining projects and blacklist for a year those who withdraw from the bidding process, according to the draft bid guidelines. The draft coal auction documents, circulated for comments of the stakeholders, provide that power projects can sell 20 per cent of their un-contracted capacity in the open market, while the balance has to be sold through power purchase agreements with distribution companies. Companies can´t exit projects after allocation of coal blocks Industry insiders said presently over 10,000-MW of coal-based power generation capacity do not have PPAs, making them ineligible for supply from Coal India or mining from coal blocks. Distribution companies of only four-five States have floated tenders seeking long-term power supply in the last few years.
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