Coal news and updates

Tapering linkage extension decision to come soon

March 18: It is expected that a decision on the continuation of tapering linkages beyond March 31, 2015, in the aftermath of the Supreme Court verdict de-allocating all the 204 coal blocks last year, will soon be taken by the Standing Linkage Committee -Long-Term (SLC-LT), which met as recently as March 12, 2015.

In the wake of the de-allocation verdict by the Supreme Court (SC), the Ministry of Power (MoP), in an attempt to provide security of fuel supplies to end-use plants, had suggested to the Ministry of Coal that it could consider maintaining the tapering linkage at the rate prevailing at the time of the Supreme Court (SC) order till the coal block auction process is completed. This proposal pertains to all power projects which had tapering linkages but whose blocks had been de-allocated by the SC.

Subsequently, the MoC had allowed the above dispensation till March 31, 2015, subject to a review as to whether this scenario can be continued beyond the current fiscal.

This dispensation will be applicable to those power plants which are part of the 78,000 MW list approved by the Cabinet Committee on Economic Affairs (CCEA), and have long-term power purchase agreements.