Coal panel to decide on allocation issues

In a step towards ironing out the coal supply woes being faced by upcoming power projects,an interministerial panel on coal linkage allocations is slated to meet here on Tuesday. The meeting comes amid hectic efforts that are currently underway to ensure that projects close to commissioning are not forced to idle for want of fuel.

On the agenda of the Standing Linkage Committee meeting is a review of the letters of assurances LoAs or the preliminary supply documents that have been issued by Coal India Ltd CIL for projects that were originally supposed to come up by March 2012,the terminal month of the Eleventh Plan,but have now been pushed forward into the Twelfth Plan period starting April 2012. The list includes 14 generation projects,which have achieved most of the construction milestones,but actual commissioning is likely to spill over beyond March 2012.

Also,the contentious issue of the quantum of coal to be assured in the fuel supply agreement is to be taken up,specifically in the context of resistance from CIL against guaranteeing supplies of over 50 per cent. Project developers asking for supply assurances of at least 80 per cent,in line with the quantity of coal assured in the LoAs signed by CIL. The issue of the conversion of LoAs into FSAs,which CIL has not done for projects that have come up since March 2009,is also likely to figure in the meeting. The meeting is also expected to take on board demands made by CIL that capacity addition during the 12th Plan period be capped at a certain level.