Coal news and updates

Uncertainty over coal supply to DVC’s 8th unit at Chandrapura

September 9: An uncertainty prevails over supply of coal to DVC’s 8th unit at Chandrapura as the Standing Linkage Committee (Long Term) has refused to recommend continuous coal supply to the unit till a clarification comes from the generation company on whether it would continue with the development of the linked Gondulpara coal block or not.

“Further view can be taken only when DVC clarified whether the power utility would continue with the development of the Gondulpara coal block or not,” the meeting observed.

DVC had been getting coal for the plant under tapering linkage, but had informed the ministry that it was in the process of surrendering the block because it was not possible for it to develop it due to “certain constraints” and had sought continuous supply of coal through linkage.

The Gondulpara block was allotted to DVC and Tenughat Vidyut Nigam Limited, but the end-use plant was not specified in the allotment letter issued by the Ministry of Coal.

However, it was later clarified that coal from the block would have been utilised by units 7 and 8 of the Chandrapura plant of DVC.

The SLC-LT meet also suggested that before taking a final call on the block or on coal supply to DVC, the views of TVNL should also be taken.

Chandrapura is within the 24 thermal power stations/units with tapering linkages for generating 78,000 MW and for which FSAs are supposed to be signed with CIL.

Out of these 24, for nine, their coal blocks have fallen in the “go-no-go” areas and whose development has been delayed.

Among the 15 remaining, cases for 6 units were found fit for extending the tapering linkages at an earlier SLC meet in October 2013 while an MoP representative had suggested that coal supplies for Chandrapura unit 7 should not be stopped without the approval of the Ministry of Coal or SLC-LT.

Comments of CIL had also been sought which had suggested that the FSA for unit 8 could not be signed since, as per a CCO letter dated August 20, 2013, the unit was the EUP of the Gondulpara coal block whose normative date of production was September 17, 2009 and that since the tapering linkage period was over, the matter could be referred to the SLC-LT.