Coal news and updates

Lanco Babandh asked to submit Stage II forest clearance for FSA

September 18: The Standing Linkage Committee (Long Term) of the Ministry of Coal has given time till December 31, 2013 to Lanco Babandh Power Ltd to acquire Stage II Forest Clearance for its Phase-1 unit to be eligible to sign Fuel Supply Agreement (FSA) for getting coal supplies.

The committee, in its meeting on September 13, observed that Lanco has achieved all milestones, except Stage II forest clearance, for 18 acres out of the total 947 acres of land required for the project.

Out of these 947 acres, more than 90% has been acquired which is free of forests, the SLC (LT) meeting observed saying this constitutes substantially satisfying portion of the process of meeting of this particular milestone, but asked the Mahanadi Coalfields Ltd to verify this.

"Lanco may sign the fuel supply agreement which shall take effect only after submission of the remaining Stage II clearance by December 31, 2013," the committee said.

It may be recalled that, for various coal-fired power projects, many milestones had not been achieved. Consequently, the review meeting held on February 14, 2012 and the SLC (LT) held on May 31, 2013, had suggested the coal companies were to take further actions as per the recommendations.

The projects are covered within the 78,000 MW capacity power plants approved for coal supplies by the Cabinet Committee on Economic Affairs (CCEA).