Coal news and updates

As per New Coal Distribution Policy (NCDP), 2007, Standing Linkage Committee (Long-Term) is authorized to recommend the Letters of Assurance (LOAs) for supply of coal. Based on the SLC (LT)'s recommendation, so far 177 LOAs have been issued to various power plants including Central/State Government Sector as well as Independent Power Producers (IPPs). The total capacity of LOAs issued to IPPs (including Joint Ventures) is about 70938 Megawatt. This was stated by Sh. Piyush Goyal, (Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today. 

 

The Minister further stated that coal is being supplied to Power Sector as an essential input for power generation. It is being supplied to power plants having coal linkage as per Fuel Supply Agreement at Coal India Limited (CIL) notified price and having long term Power Purchase Agreement (PPA) with power distribution companies and designated agencies. Therefore, benefits of notified price of coal are passed on to consumers. 

 

The Minister informed that there is no provision of supply of coal at subsidized price to private power plants. 

 

 

Source: http://www.business-standard.com/