Coal news and updates

Short-term measures might impact the long-term plans of power producers, including Adani Power, KSK Energy Ventures and state-owned NTPC, which are arranging coal through the e-auction route or imports in the absence of a coal linkage policy, which impact the viability of their projects.

 

For example, Adani Power’s 3,300-megawatt (Mw) coal-based plant in Tiroda has signed a power purchase agreement (PPA) at competitive prices but it has linkage for only 1,180 Mw. The remaining fuel requirement of the power station is met through e-auction or via imported coal.

 

The Lohara West Extension coal block of the Wardha Valley coalfield was allocated to the Tiroda plant in November 2007. However, before the commencement of any mining activity, the environment ministry cancelled the allotment, as the mine came under the wildlife corridor for a tiger reserve.

 

The plight of the company’s 1,320-Mw Kawai plant in Rajasthan is no better. This plant is awaiting the government’s new coal linkage policy, which has been in the works for at least a year now.

Source:Business Standerd