Coal news and updates

Cabinet may take up coal linkage issue tomorrow

The Cabinet may take up tomorrow the issue of coal supply to thermal power projects with tapering linkages beyond the three-year period.

Tapering Linkage is short-term linkage provided to those consumers who have been allocated captive coal blocks but the mines could not be developed on time.


"The issue of supply of coal to thermal power plants ( TPP) with tapering linkages beyond the tapering period of three years after the normative date of production may come up for the consideration of Cabinet Committee of Economic Affairs tomorrow," said a source close to the development.

RThe government had in December approved more coal supply to nine power projects, including those of GMRBSE 0.51 % and Sterlite which failed to develop mines allocated to them due to environment hurdles.

"The CCEA has approved the supply of coal to nine of such 24 units in which development of coal block was delayed due to the 'Go', 'No-Go' Policy of the Ministry of Environment & Forests on FSA (Fuel Supply Agreement) basis subject to review/ readjustment wherever necessary," an official statement had earlier said.

According to official sources, the Cabinet had approved two power projects of Sterlite, two of GMR and two of KSK Mahanadi Power, among others.


While the quantity of fuel admissible under Tapering Linkage Policy will be supplied through Fuel Supply Agreement, the additional quantities will be supplied on Memorandum of Understanding basis, subject to availability of coal, the statement had added.

The position would be reviewed at the end of the first, second and third year by the Coal Ministry along with the Power Ministry and Planning Commission.

The CCEA had earlier approved coal supplies to TPPs with a capacity of 78,000 MW. There are 24 TPPs with tapering linkages within 78,000 MW capacity.

Only the quantities admissible under the tapering linkage policy were approved for such plants.

Subsequently, requests were received from developers and recommendations by the Power Ministry that some of the TPPs with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore fuel supplies for such plants should continue.

Source: PTI