Coal news and updates

CIL rigid on non-extension of tapering linkage for 6 units

September 10: Coal India has taken a rigid stand with regard to six power units with tapering linkages which the SLC-LT, at its meet in October, 2013 had decided were fit for extension of coal supplies for another year, under an MoU.

These six units are

• DVC’s Mejia TPS 500-MW unit 8 in phase II with tapering linkage from Bharat Coking Coal Limited,
• KPCL’s Bellary TPS’ 500-MW unit 2 with tapering linkage from Mahanadi Coalfields,
• GSECL’s Ukai TPP’s 500-MW unit 6, with tapering linkage from South Eastern Coalfields,
• MAHAGENCO’s 250-MW Parli unit 8 with tapering linkage from Western Coalfields, and
• Adani Power’s Tiroda TPS’ phase I, unit II and phase II, unit I.

However, this SLC recommendation could not be carried out since these had to be placed before the CCEA and status quo has been maintained since.

The matter was placed before the SLC-LT again at its latest meeting on June 27, 2014, whereby the panel recommended that the earlier decision to allow extension of the coal supply under an MoU stands but now it shall be for a period of six months or till the CCEA approval is obtained, whichever is earlier.

But, Coal India officials have been firm in saying that the three years’ tapering linkage period is over and no further linkage on this basis “is admissible presently”, resulting in an impasse.

These six units fall within the 24 units with tapering linkages under the 78,000 MW capacity and for which CIL has had to sign FSAs with the respective units.