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SECL to seek clarification on Vandana Vidhyut for conversion to IPP from CPP

January 21: The Standing Linkage Committee (Long Term) for power/sponge and cement in its meeting held in December has given responsibility on South Eastern Coalfields Ltd (SECL) to seek clarification from Vandana Vidhyut Ltd against its application for conversion of its 8 MW rice husk based captive power plant (CPP) to Independent Power Plant (IPP).

"The SECL would seek clarifications in the matter from the developer and inform the status to the Ministry of Coal within a month and the matter would be discussed in the next SLC (LT) meeting," the committee said in its meeting held on December 20, 2013.

The power generator had applied before the SLC (LT) to convert the status of its CPP to IPP as the power generated from its plant in Bilaspur was being supplied to State Electricity Board.

In its application, the company had stated that their plant is an 8 MW Rice husk based biomass power plant whereas Ministry of Coal's linkage letter shows it in the CPP category.

The Joint Secretary, Ministry of Power, said during the discussion in the meeting that the plant was getting coal at a premium whereas on conversion to IPP, coal would be supplied at notified price.

However, the Joint Secretary added that "As the PPA would have been signed earlier taking into account coal prices as CPP, it was necessary to examine as to how the savings on fuel cost would be passed on to the consumer."

The representative of Coal India Ltd present in the meeting pointed out that the project was described as rice husk based bio-mass plant and as per norms only 15% of coal was to be supplied, whereas coal was being drawn at 30% of the fuel requirement.