Coal news and updates

CIL signs FSAs with 16 private power projects

In a major relief to the fuel-starved power sector, state-run monopoly supplier Coal India Limited has signed agreements to supply coal to sixteen private power projects worth Rs 84,500 crore with a generation capacity of over 14,000 mega watts or MW. With these long-pending fuel supply agreements in place, seven of these projects can be commissioned as early as the next quarter (between October and December), while the rest would start power generation between January and September next year.

The coal ministry has expedited the signing of these pacts in view of the Centre's drive to revive investor sentiment by jumpstarting large stalled investments. The ministry is pursuing similar fuel supply pacts for nine more power projects worth Rs 41,200 crore.

"Fuel supply agreements have been signed by Coal India and its subsidiaries with sixteen projects over the last few days," a senior power ministry official said, adding that half of these projects are located in Chhatisgarh and two each are in Maharashtra, Odisha and West Bengal.

The power ministry has identified 122 plants that are waiting for myriad clearances, including assured fuel supplies, and sought the help of a special cell in the cabinet secretariat set up to resolve lastmile hurdles holding up investment plans. "The development is significant as no private sector power project has got coal linkages since 2009," said a senior government official.

Project developers who can finally start commercial operations thanks to this development, include GMR Energy, Lanco, Adani Power, DB Power and the Avantha group. The coal ministry had earlier set a deadline of August 31 for signing fuel supply agreements, but later sought an extension till September 6 that was approved by the Cabinet Committee on Investments at its last meeting in late August.

Source: The Economic Times