Coal news and updates

Panel on coal linkages to meet on February 21

An inter-ministerial panel which was to meet on February 19 to review the status of existing coal supply agreements with the power sector will now meet on February 21.

"The meeting of the Standing Linkage Committee (Long-Term) for Power/Sponge/Cement sectors to review the status of existing coal linkages/LoAs (Letter of Assurances) and other related matters will now be held on February 21, 2014 instead of February 19," according to a Coal Ministry memorandum.

 However, no reasons were given by the Ministry for extending the date of meeting.

Amid continuous delays, the Cabinet Committee on Investment had earlier said that timelines for signing fuel supply pacts for power projects of 78,000 MW capacity should be met.

State-owned Coal India has so far signed 157 fuel supply agreements with power producers for a capacity of 71,145 MW and has missed two deadlines.

Earlier, Coal Minister Sriprakash Jaiswal had said that the remaining supply agreements would be signed once technical glitches are addressed.

Coal India will supply as much as 80 per cent of a power producer's requirements, of which 65 per cent will be sourced locally and 15 per cent will be met through imports.

The mining company last month invited fresh applications for supply of coal from overseas to meet its obligations to power producers under the fuel supply agreements. It plans to import five million tonnes of coal.

Source: PTI