Planning Commission prepares Cabinet note on coal for captive power plants

The Planning Commission has circulated a Cabinet note seeking to implement the recommendations of the B K Chaturvedi Committee to ensure coal supply for captive power plants (CPPs).. The note for consideration of the Cabinet Committee on Investment suggests that the Coal Ministry sign initial pacts as envisaged to provide coal to consumers, including CPPs, which cannot be covered with letters of assurances or fuel supply agreements, Coal Ministry sources said.. The Chaturvedi panel also suggested that the Coal Ministry should provide coal to CPPs already commissioned, including those likely to start by March 2015, by making minor adjustments in supplies to other consumers, a source said.. Another source added that the Chaturvedi Committee had recommended that the power ministry "identify CPPs willing to opt for open access without surcharge to tie up power supply from the power plants.". The CCI had earlier directed that an inter-ministerial group (IMG) under the Member (Energy) of the Planning Commission identify projects in sectors other than power that require coal for captive power plants.. The Planning Commission constituted the IMG under the chairmanship of Chaturvedi. The eight-member panel includes representatives from the coal, power, steel and mines ministries.. The Chaturvedi Committee was asked to identify CPPs in sectors other than power, assess their coal needs in the 12th and 13th Plan periods and suggest ways to provide coal to them. This was in the light of the Coal Ministry's policy to consider captive power plants non-priority coal consumers.. The IMG estimated that coal-based captive power plants would add about 10,000 MW of capacity during the 12th Plan period (2012 to 2017) and would require about 20 million tonnes of the fuel.. It also suggested options to make available the additional 20 million tons of coal. Captive power plants have been growing at a fairly aggressive pace in the country.. In March 2013, the total installed capacity of captive plants in the country was about 39,375 MW. During the first year of the 12th Plan, they added 3,925 MW, of which 2,255 MW was coal-based.. According to Indian Captive Power Association, out of the 39,375 MW captive power capacity at the end of the 11th Plan, the coal-based capacity was 22,615 MW.

Planning Commission prepares Cabinet note on coal for captive power plants

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