1. Coal ministry to update linkage policy after CCEA direction expires

Coal ministry to update linkage policy after CCEA direction expires

As the government is brainstorming over methodology for auctioning coal linkages, the coal ministry has decided to ensure supply of the fuel under a separate memorandum of understanding (MoU) to 24 power plants with combined capacity of 10,000 MW which had to give up their captive mines following the Supreme Court order in September last year .

By: | Published: July 2, 2015 12:45 AM

As the government is brainstorming over methodology for auctioning coal linkages, the coal ministry has decided to ensure supply of the fuel under a separate memorandum of understanding (MoU) to 24 power plants with combined capacity of 10,000 MW which had to give up their captive mines following the Supreme Court order in September last year . The government’s decision comes in the wake of expiry of the period for coal supply policy decided by cabinet committee of economic affairs (CCEA) in 2013.

These plants were entitled for tapering linkage –coal supply that is progressively reduced till captive mining becomes operational — but will now be supplied coal through MoU till March 31, 2016 or until a policy is formulated, the coal ministry said.

In case of thermal plants that are are stressed or in short supply of coal due to non-availability of either a captive coal mine or a linkage, a separate quantity within the e-auction quantity would be earmarked for the power sector so “that the assets created are put to use and they do not turn into NPAs”, the standard linkage committee (SLC) decided in a meeting.

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