Coal supplies to Power Projects

The Cabinet Committee on Economic Affairs has approved the supply of coal to nine of the 24 units in which the development of coal blocks was delayed due to the ‘Go-No-Go’ Policy of the Ministry of Environment & Forests on FSA basis subject to review/ readjustment wherever necessary.

There were 24 Thermal Power Plants (TPPs) / units with tapering linkages within 78,000 MW capacity. Only the quantities admissible under the Tapering Linkage Policy were approved for such plants. Subsequently, requests were received from developers and recommended by the MoP that some of the TPPs with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore, coal supplies for such plants should continue.

It has been proposed to provide additional coal supplies to these nine units for a period of three years (till 30.09.2016) or for the period that they were affected by the said policy or till such time the production actually starts from the blocks, whichever is earlier. It has also been proposed that the position would be reviewed at the end of the First, Second and Third year by the MoC along with MoP and Planning Commission. While the coal quantities admissible under Tapering Linkage Policy will be supplied through FSA, the additional quantities will be supplied on Memorandum of Understanding (MoU) basis, subject to availability of coal.

The CCEA had earlier approved coal supplies to Thermal Power Plants (TPPs) with a capacity of 78,000 MW commissioned/ to be commissioned during the period from 01.03.2009 to 31.03.2015. Domestic coal quantities were decided at 65%, 65%, 67% and 75% during the remaining four years of 12th Plan. To meet the balance obligations, Coal India Ltd. (CIL) is to import coal and supply to willing TPPs. The TPPs can also import coal themselves. A Presidential Directive has been issued to CIL accordingly and 157 FSAs for a capacity of 71,145 MW have been signed so far.