Coal news and updates

Tapering linkages to continue for TPPs whose blocks were de-allocated

February 05: The Ministry of Coal (MoC) has decided to extend tapering linkages till March 31, 2015 to the power projects whose blocks have been de-allocated by the Supreme Court judgment.

Incidentally, the Ministry of Power had recommended that for all the power projects which had tapering linkages but whose coal blocks have been de-allocated by the Supreme Court judgment, the Ministry of Coal may consider maintaining tapering linkage at the tapering rate prevailing at the time of apex court’s order till the coal block auction process is completed.

“Keeping in view the recommendation made by the Ministry of Power, it has been decided that the projects which had tapering linkage, but whose coal blocks have been de-allocated, may be allowed to maintain tapering linkage till March 31, 2015, subject to review after that date,” said J S Bindra, director, Ministry of Coal.

Bindra, however, clarified that this dispensation will apply to plants which are part of 78,000 MW list approved by the Cabinet Committee on Economic Affairs (CCEA) and are running and they have long term power purchase agreements (PPAs).

The ministry has also separately permitted power plants which got commissioned after April 1, 2009 and which have FSAs (and long/medium-term PPAs with Discoms if required) up to 65% of pro-rata ACQ up to March, 2015 to be eligible to get coal from Mahanadi Coalfields Ltd (MCL) under its allocation quota for the month of December 2014.