APMDC Suliyari coal upcoming auction 1,50,000 MT for MP MSME on 2nd Dec 2024 @ SBP INR 2516/- per MT
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New UserCCEA defers decision on coal supply policy to power firms
21 Jul 2016
The Cabinet Committee on Economic Affairs (CCEA) has deferred a decision
on policy for award of Coal India contracts to power firms, a person familiar with the matter
said.
The CCEA has asked ministries of coal and power to hold further deliberations, said the
person, who did not wish to be identified.
The proposal was aimed at auctioning Coal India Ltd coal contracts to private power firms and
allotting them to public sector firms in a transparent manner.
As per the proposal, fuel supply contracts to state and central public sector power utilities will be allotted on nomination basis.
The Coal India contracts were proposed to be allocated separately for power plants with power purchase agreements (PPAs) and projects
that do not have such pacts.
For plants that have power pacts with electricity distribution companies, the coal contracts were planned to be allocated through an online
auction to the highest bidder. About 12000 mw power plants of companies such as Adani Power, GMR Energy and Sterlite Energy do not
have coal supply despite having signed PPAs with state distribution companies.
The contracts will, however, not allow the power plants to pass through high cost of the coal to consumers, a condition aimed at preventing
tariffs from rising.
Source:Economic Times