Coal news and updates

Automatic transfer of old linkages to new PSU plants

In a major relief to state-owned power plants and in a move aimed at encouraging setting up of power plants with super-critical technology, the government has decided to automatically transfer letters of assurance (LoA)/linkage granted to their old power plants to the new plant that will have super-critical capacity.

An office order from the Ministry of Coal (MoC) said the decision has been taken in view of the multi-fold benefits of super-critical units like better efficiency, lower emissions and optimisation of land and water usage.

Not only will the new power plants get automatic linkages, they may be accorded priority in getting additional coal, subject to the availability of the fuel, if the capacity of the new super-critical plant is higher than that of the old plant.

However, the automatic transfer of linkages would be permissible only when the new plant is set up within the state in which the old plant was located, the order said.

Source: ICMW