Coal news and updates

Volume of FSA/LoA coal required by EUPs at 22.14 mt

July 22: The total volume of FSA/LoA coal required by the end-user plants (EUPs) linked with coal blocks which have been de-allocated (36 cases) and delayed due to lack of environmental clearances etc (five cases) amounts to around 22.14 million ton (mt), according to the Ministry of Coal (MoC).

At the fifth meeting of the Inter-Ministerial Committee (IMC) constituted by the MoC, held on June 11, this year, it was also revealed that, out of this quantum, 6.16 mt is required by the independent power producers (IPPs) while the volume required by the captive power plants, sponge iron and cement sectors is 6.16 mt, 4.46 mt and 5.36 mt respectively.

It was suggested at the meet that the first priority in coal supply should be accorded to those plants which already had coal linkages for their plants but, consequent upon the allocation of a coal block, their existing linkages were tapered vis-a-vis those plants which had applied for a coal block for setting up an EUP.

Others suggested that the existing linkage holders who had been allocated coal blocks should surrender their linkages in anticipation of the coal block catering to their coal requirement. At the same time, new EUPs made their investment decisions upon assurances that that their coal requirements would be met from allocated blocks. Hence, it was suggested that both categories should be kept at par with each other.