APMDC Suliyari coal upcoming auction 1,00,000 MT for MP MSME on 1st Oct 2024 / 1st Nov 2024 & 2nd Dec 2024 @ SBP INR 2516/- per MT
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New UserPower plants sans PPAs to get 5 MT coal
06 Jul 2015
Aware of acute coal shortage being faced by power plants not having power purchase agreements (PPAs), the coal ministry has reserved some coal so that they do not turn into non-performing assets (NPAs). Plants having short term PPAs will also be eligible to get coal from this quota. However, the quantity is inadequate and may not be of much help.
The ministry has asked coal companies to keep aside 5 million tonne (MT) coal for power plants without PPAs and those with short term PPAs. This is to be kept aside from the quantity reserved for e-auction. The reserve price for this coal will be notified price of Coal India Limited (CIL) plus 40% premium. Auction for this 5 MT will have to be conducted separately.
A private power plant official said that 5 MT coal per annum could meet the requirement of 800MW to 900MW. "Generation capacity not having PPAs or short term PPAs is four to five times higher than this. It may only be of token help," he said.
The ministry has asked CIL to reserve another 5 MT for power plants having long term or medium term PPAs but facing coal shortage. The reserve price is CIL notified price plus 20% premium. Auction for this coal too will be conducted separately.
There is a ray of hope for all these power plants as the ministry has agreed to review the reserved quantity based on the experience of the first round. The official said that competition for getting this 10 MT coal is likely to be intense and ministry might be encouraged to reserve more coal.
The ministry has issued directions on tapering (temporary) linkages too. It has decided to terminate such linkage to 24 generation units whose captive coal linkage was cancelled by Supreme Court. The total generation capacity of such units is 9,840MW. The ministry has directed CIL to go in for separate memoranda of understanding (MoUs) for such units at prices prevailing on June 30, 2015.
Six units of Mahagenco having total capacity of 3,230MW fall under this category. A 250MW unit had a tapering linkage while Mahagenco was desperately seeking tapering linkage for the remaining five. Now it can try to get MoUs for these units.