Priority-based coal linkage to light up power projects

Written by Sanjay Jog | Mumbai, Aug 28 | Updated: Aug 30 2008, 05:24am hrs
In a significant development, the power ministry has recommended priority list for allocation of coal linkage for power projects with the total generation capacity of 1,20,886 mw.

These coal blocks are in addition to the power projects of capacity of 60,000 mw granted linkage earlier. These projects are expected to come up in 11th and 12th Plan periods. The Centre is chasing a capacity addition target of 78,700 mw in 11th plan and 80,000 mw in 12th Plan and majority of which is expected to be coal-based power projects.

Power ministry sources told FE it has recommended allocation of coal blocks on first priority for 23 thermal power projects with a total capacity of 13,010 mw to be come up in the 11th Plan.

The ministry has brought to the coal ministrys notice that the coal lnikage is yet to be made for these projects. In all, 11 thermal power projects with a total capacity of 11,020 mw being planned by the central public sector undertakings have been recommended for coal linkage for first two years of 12th Plan (2012-17).

Besides, the ministry has recommended 21 state power projects, with a total generation capacity of 18,195 mw for coal linkage for the first two years of 12th Plan. Moreover, the ministry has recommended coal linkage for nine independent power projects (IPPs) with capacity of 5,590 mw.

The coal ministry has given coal linkage for part capacity. However, the power ministry has argued that the coal linkage be given for full capacity to enable financial closure of the project and placement of order.

These IPPs be given conditional letter of award (LOA) with condition that final

LOA will be given to them on furnishing on or before November 11 commitment guarantee and copy of purchase order for main plant and equipment with proof of advance payment.

Sources said the ministry has also recommended coal linkage to 64 IPPs with capacity of 68,539 mw who are currently having no coal linkage.

These projects may be given LOA on condition that final LOA be given to them furnishing on or before November 11 commitment guarantee and copy of purchase order for main plant and equipment with proof of advance payment.

The ministry has also recommended 10 IPPs with generation capacity of 922 mw to be developed with the use of washery rejects/Bio mass as main fuel.

The ministry has also suggested 27 captive power projects with capacity of 3,610 mw for coal linkage.