Coal news and updates

Panipat linkage transfer to new unit gets MoC nod

April 17: The Ministry of Coal (MoC) has approved transfer of the existing coal linkage of the Panipat thermal power station (TPS) to a new super-critical plant to be set up at the same location.

The decision has been taken on the basis of recommendations of the Standing Linkage Committee (Long-Term) which considered the request of the government of Haryana, an official release said.

It may be recalled that new government, after taking over in May, 2014, formulated a policy for automatic transfer of coal linkages in case of scrapping of old thermal plants and replacing them with new super-critical plants, to encourage better technology and production efficiency.

Under this dispensation, inefficient and uneconomical units 1 to 4 (each of capacity 110 MW) at Panipat TPS shall be replaced by setting up more efficient super-critical unit of 660/800 MW capacity at the available land within the same premises by way of simultaneous phasing out units 1 to 4 during the next 4 to 5 years.

Under this policy, LoAs/linkages granted to the old plant shall be automatically transferred to the nearest new plant of super critical capacity.

If the capacity of the new super critical plant is higher than the old plant, additional coal may be accorded priority subject to the availability of coal on best effort basis from Coal India Limited (CIL).

The only technical requirement is that a capacity equivalent to at least 50% of the proposed capacity of the new super-critical plant has to be retired. This policy shall be applicable to pre-NCDP ( New Coal Distribution Policy)  plants in the public sector only, which have already been granted long-term linkages/LoAs.

Automatic transfer of LoA is permissible only when the new plant is set up within the state in which the old plant was located and the old plant is actually scrapped.

Obviously, the old plant can continue to operate only till the commercial operation date (CoD) of new plant.