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This is an archive article published on July 4, 2012

House passes motion to import coal for power plants

On the last day of the Assembly’s budget session,Chief Minister Akhilesh Yadav moved a motion requesting support of the house to allow import of coal,should the central government fail to provide coal linkages for new power plants in the state.

On the last day of the Assembly’s budget session,Chief Minister Akhilesh Yadav moved a motion requesting support of the house to allow import of coal,should the central government fail to provide coal linkages for new power plants in the state.

He informed the house that the central government had expressed its inability to provide coal linkages for 10 thermal power projects,and sought support to change the new “coal linkage based” plants to “imported coal based” ones.

MoUs for building these 10 plants under the public private partnership (PPP) model were signed by the Mayawati government in 2010 and 2011,but no operations could start for want of coal linkages. The SP government has decided to give private firms more time to start work on the projects,but the non-availability of coal linkages has persisted.

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His government has been forced to take this step because of the acute power crisis in the state and the shortage of coal,Akhilesh informed the house.

The motion was passed,but BJP MLAs expressed concern over the likely rise in tariff due to the use of imported coal. Akhilesh conceded that tariffs were likely to rise,but promised that the government would keep rates “competitive and logical”.

The Bajaj group had approached the government last month for permission to import coal for its 980 MW thermal power power plant in Lalitpur. A decision remains pending,but sources said several other companies too had expressed inability to begin work due to the non-availability of coal linkages.

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