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Coal ministry refuses to revive LoA of Bokaro Power Supply Company

January 21: The standing linkage committee (Long term) has refused the contention of Bokaro Power Supply Company (P) Ltd (BPSCL) to revive the Letter of Assurance (LoA) for supply of coal to its 75 MW expansion unit or Captive Power Plant (CPP) and has instead recommended to supply coal to the company for only 36 MW.

The BPSCL had been issued LoA for 75 MW CPP in February 2009 and as per terms and conditions of LoA it had to submit prescribed milestones for 75 MW. But the company had submitted milestones for 36 MW BPTG and 300 tons per hour high pressure boiler which it claimed was equivalent to 75 MW power plant.

However, CCL, a subsidiary of Coal India Ltd (CIL) had termed the documents of BPSCL as irrelevant stating that the LoA was issued for 75 MW CPP and not for 36 MW BPTG and 300 ton/hour high pressure boiler.

Later on Central Electricity Authority (CEA) had clarified that steam conditions at the inlet to the turbine are indicated as 300 tons per hour at 98 ata and 535 degree Celsius. The steam at out let of back pressure turbine is indicated to be 297.88 tons per hour at 13 ata and 267.48 degree Celsius thereby generating about 36 MW of Power.

It had said that steam take out of back pressure turbine at 13 ata is to be used as process steam in the steel plant and as such the coal requirement for the steam cum co-generation plant will correspond to 300 ton per hour boiler equivalent to about 75 MW out of which 36 MW corresponds to power generation and the rest for process steam for the boiler of the Steel Plant.

The SLC (LT) had to decide whether milestones for 36 MW may be accepted in this matter instead of 75 MW as suggested by CEA.

A representative of CIL present in the meeting, however, said that LoA was granted for CPP of 75 Mw and accordingly milestones were to be achieved. "Coal for process steam could not be a part of the linkage for CPP," he said.

However, representative of the Ministry of Steel stated that the entire linkage should be restored as the requirement of coal for the whole process including the CPP was correctly indicated in the application for linkage and the linkage was granted accordingly.

After hearing the contention of CEA, CIL and Ministry of Steel, the SLC (LT) said that, "Since the clarification had already been given before the cancellation of the LoA, the same may be accepted. Since the milestones have all been met for 36 MW, the CPP linkage shall be for 36 MW."

It further said that the issue of linkage for process steam shall have to be examined separately and accordingly, the LoA and BG shall be revived and modified.