Coal linkages of 25 captive power plants cancelled

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New Delhi: Cracking the whip on power firms, the government on Friday cancelled coal linkages of 25 captive power plants with a combined capacity of 1,292mw. These units require 5.844 million tonne of coal per annum.

It was noted that despite a considerable lapse of time, they failed set up power plants in spite of having been accorded coal linkage by the ministry between 1996 and 2006, coal minister Sriprakash Jaiswal told reporters here.

Apart from this, “In seven cases appropriate directions have already been issued for signing the fuel supply agreement (FSA), ...whereas in the remaining 19 cases, CIL has been asked to place their names on the websites and also send letters asking them to give detailed project status within 15 days failing which linkage will be cancelled without any further notice," Jaiswal said.

These linkages were allotted between 1996 and 2006. The ministry held a meeting in June with private and public sector companies including NTPC, SAIL, and NMDC and reviewed the progress of work on the captive coal blocks allotted to them. The ministry has already served de-allocation notice on 14 coal properties. Most of these 25 plants that lost coal linkage were located in Chhattisgarh, Jharkhand, and Maharashtra, Jaiswal said.