Coal ministry asks states to make IPPs ink purchase pacts

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States where power producers do not sign up will stand to lose their coal blocks (AP) States where power producers do not sign up will stand to lose their coal blocks (AP)
SummaryStates where power producers do not sign up will stand to lose their coal blocks

executing such a lease.

In case where a mining lease has already been executed, this should be imposed as an additional condition of the lease and incorporated in the agreement by way of an addendum, the ministry told the chief secretaries.

“In the larger public interest IPPs allocated blocks must participate in the bids floated by discoms or their authorised agency for procurement of power as per bidding guidelines under Section 63 of the Electricity Act 2003,” the ministry said.

The coal ministry’s directive comes after 29 blocks have already been allotted to the IPPs.

While most of them may not have come into production, but not mandating them to sign PPAs remains unclear. The CBI, which is investigating the irregularities in the allocations since 1993 is now learnt to be asking for relevant information in this connection.

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