Power Ministry Moves Cabinet Note to Ensure Coal Supply for Plants: Report

The Power Ministry has moved a draft Cabinet note to ensure coal linkages for power projects which are already commissioned or are likely to be commissioned by March.

It follows Finance Minister Arun Jaitley's announcement in the Budget 2014-15 speech that adequate quantity of coal will be provided to power plants that are already commissioned or would be commissioned by March 2015, to unlock dead investments.

The Power Ministry has sought suggestions of various ministries like coal, finance, law and environment on its draft note that seeks to ensure coal supplies for the thermal power plants, said a source close to the development.

The source further said that the approval of the CCEA is also being sought for supply of linkages to the power plants being commissioned after March, 2015 and up to the end of 12th Plan Period, i.e. 2016-17.

These are the power plant which neither have Letter of Assurances nor fuel supply agreements, the source added.

In June last year, during the CCEA meeting it was decided that state-owned Coal India (CIL) which accounts for over 80 per cent of the domestic coal production will sign fuel supply agreement for about 78,000 mw capacity for which linkages was earlier granted by way of Letter of Assurance issued by the 'Maharatna' firm.

Out of this 78,000 mw, 48,100 capacity has already been commissioned by March.