Coal news and updates

Coal supply assured till June 30 for running units

March 31: The Standing Linkage Committee (Long-Term) for Power/Cement/Sponge Iron sectors, which met on March 12, 2015, to decide on the proposal for supply of coal beyond March 31, 2015 to end-use plants (EUPs), has mainly suggested supply to continue till June 30, 2015.

For instance, with regard to units affected by the de-allocation of coal blocks and environmental clearance issues, the panel said coal supply to such units which had normal linkages before the allocation of the earlier coal blocks should continue till June 30, 2015.

This decision is on account of the fact that these are running units, a Ministry of Coal (MoC), communique has revealed.

Taking into account units covered under “similarly placed power plants” (with coal blocks) commissioned/expected to be commissioned by March 2015, the SLC-Long Term, said supply should be strictly in accordance with the CCEA decision of June 2013 and only up to June 30, 2015.

These units fall in the list of the 9,940 MW provided by the Ministry of Power to which norms applied to 4,660 MW as per the CCEA decision of June 2013 are applied.

The units include GVK Power (Goindwal Sahib) Pvt at Goindwal Sahib, Punjab; Koradi units 8,9 and 10 of MSPGCL, Maharashtra (3x660 MW); Mahan TPP (Ph I) of Essar Power Limited (2x600 MW) in Madhya Pradesh amongst others.

With regard to 6 units in particular, the committee said supply will continue till June 30, 2015, since these are running plants.

However, for all the above categories, in case supply of coal starts from Schedule II blocks allotted to fresh allocatees in the current auction process, this dispensation shall cease in respect of the units linked to such blocks.