Coal news and updates

Birla Cellulose set to get coal for additional 10 MW plant

January 21: The Standing Linkage Committee (Long Term) or SLC (LT) has directed the South Eastern Coalfields Ltd (SECL) to settle the matter within January 31, 2014 for supply of coal to 10 MW power plant of Birla Cellulose in Gujarat.

The company had been issued Letter of Assurance (LoA) for 25 MW power plant, but subsequently it had decided to install a reduced capacity of 10 MW and had applied for the same within the validity of Letter of Assurance (LoA).

However, a notice for cancellation of LoA was issued to the company in August 2011 by SECL for not meeting certain milestones.

But after a series of discussions between Ministry of Coal, Coal India Ltd and SECL, the Ministry had recommended for withdrawal of the notice subject to certain conditions.

After this, SECL had alleged that Birla Cellulose had not met certain milestones and had not submitted some documents related to land, forest clearance and also there was delay in submission of additional commitment guarantee.

The SLC (LT) on December 20, 2013 recommended that "deficiencies in the documents will be cured by the developer and the SECL will settle the matter within January 31, 2014."