Coal news and updates

SLC (LT) meet on June 27 to review status on coal linkages and others

June 26: The Standing Linkage Committee (Long Term) or SLC (LT) will review the status of existing coal linkages, Letters of Assurances (LoA) and other related matters in coal, sponge iron and cement sector, in a meeting scheduled to be held on June 27, according to a note from the Ministry of Coal (MoC).

According to the note, fate of 11 fuel supply agreements (FSA), except the LANCO Babandh Power Limited, is expected to be discussed in the meeting. Coal India Limited (CIL) is yet to sign these 12 FSAs under the Presidential directive due to various issues.

For LANCO Babandh Power Limited, SLC (LT) will decide whether Unit-I of 660 MW of total 1,320 MW of Lanco Babandh Power Limited may be treated as a long term linkage as recommended by the SLC(LT) meeting on August 2, 2007 or tapering linkage as reported by the Coal Controller’s Office (CCO).

Another major issue to be discussed in the meeting include framing a policy on transfer of coal linkage in case of scrapping of old units by replacing them with new plants. The SLC (LT) will discuss on the capacity of the new power plant, quantum of coal linkage, whether the coal supply to be stopped for the transitory period etc.

Apart from these, the SLC (LT), will also consider providing tapering coal linkage of 2.4 million tons for one year to Goindwal Sahib Thermal Power Project developed by GVK Power, and other similarly placed power plants including Mahan TPP (Ph-I) of Essar Power, additional coal supply request for Tawandi Sabo Power Ltd. and Nabha Power Ltd, request for continuation of coal supply equivalent 100% of ACQ of 800 MW tapering linkage of Tiroda TPP of Adani Power in Maharashtra etc.