Coal news and updates

6 EUPs’ fuel supply fate still hangs in balance

March 18: The Supreme Court verdict, de-allocating 204 blocks has put the fuel fate of six EUPs at stake.

These include Mejia TPS, ph II, unit 2 (500 MW); Ukai Unit 6 (500 MW); Tiroda phase I, unit 2 (140 MW); Bellary unit 2 (500 MW); Parli TPS unit 8 and Tiroda ph 2, unit 1(660 MW).

The SLC-LT had earlier suggested that coal supplies to these six units may be extended for one year beyond the expiry of the tapering linkages. However, the decision could not be operationalised as the proposal was to be approved by the CCEA. Subsequently, the SLC had decided that the supply of coal via the MoU route shall stand but for six months instead of one year or as per a CCEA decision (which is yet to be obtained).

Meanwhile, the six months have lapsed and the coal blocks linked to these EUPs, on the basis of which the tapering linkages had been given, have been declared illegal and de-allocated by SC.

But it may be noted that since the process of auctioning is still under process, a decision needs to be taken regarding supplying of fuel to these units through the MoU route beyond March 31, 2015 to fill the gap and the same is expected soon.