In a relief to nearly 30 power plants with over 10 GW capacity, the coal ministry on Wednesday instructed Coal India to maintain tapering coal supply to them till the end of March at the same tapering rate they were entitled to before cancellation of their blocks by the Supreme Court.
Power plants whose mines are not developed in the absence of environmental clearances get coal for three years as per the tapering linkage policy. The plants of several private players including GMR and Sterlite Industries have been availing tapering linkage from CIL.
The decision was in response to the power ministry’s recommendations that for all power projects which had tapering linkage but whose blocks had been deallocated by the Supreme Court, the coal ministry may consider maintaining tapering linkage till the block auction process is completed. “It has been decided that the projects which had tapering linkage but whose blocks have been de-allocated, may be allowed to maintain linkage at the tapering rate prevailing at the time of the SC order till March 2015, subject to review after the date,” the ministry wrote to CIL.