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Power plants seek Coal India’s e-auction calendar

Power plants holding longterm power purchase agreements with consumers have asked Coal India for a 12-month e-auction calendar, to help them plan operations better.

A company with power supply agreements has to supply power when the consumer demands, or they must face penalties.

But Coal India auctions depend on availability after making contracted supplies. Buyers from e-auctions want a more predictable supply. Power firms with supply contracts receive only 75% of the coal requirement from the miner. They need auctioned coal to meet their respective sale commitments.

“On account of adhocism of the auction process, power producers are finding it difficult to plan long term procurement of coal under the scheme with regard to yearly generation targets and schedules, while Coal India maintains that sufficient coal is available with them to meet the requirement of all sectors,” said Ashok Khurana, director general of the Association of Power Producers, in a letter written to Coal India.

The government’s policy for e-auction, offers coal dedicatedly for private power generation.

Source: Economic Times