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Power cos whose mines face green hurdles get coal supply

These 24 power plants with tapering linkages were part of the 78,000 MW approved by the CCEA earlier for fuel supply.

Written by ENS Economic Bureau | New Delhi | Published: December 27, 2013 2:00:47 am

The government on Thursday approved supply of coal to nine power projects,which failed to develop their allocated captive mines due to environment and other hurdles.

Coal blocks of industrial houses like GMR and Sterlite Industries would benefit from this decision.

“The CCEA has approved the supply of coal to nine of 24 thermal power plants whose coal blocks remained undeveloped due to the Go,No-Go policy of the Ministry of Environment and Forests on Fuel Supply Agreement (FSA) basis subject to review/readjustment wherever necessary,” according to a coal ministry statement after the meeting of the cabinet committee on economic affairs (CCEA) chaired by Prime Minister Manmohan Singh.

The fuel supply would be for a period of three years (till September 13,2016) under the tapering coal linkage policy. While the quantum of fuel to be supplied under the policy will be as per FSAs,additional quantities will be supplied on MoU basis,subject to the fuel’s availability. The coal supply position would be reviewed every year jointly by the coal and power ministries and the Planning Commission.

These 24 power plants with tapering linkages were part of the 78,000 MW approved by the CCEA earlier for fuel supply.

The government had received requests from developers endorsed by the power ministry that some of the thermal power plants with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore fuel supplies for such plants should continue.

Power point

* The CCEA has approved the supply of coal to nine of 24 thermal power plants whose coal blocks remained undeveloped due to the Go,No-Go policy

* The fuel supply would be for three years (till Sept 13,2016) under the tapering coal linkage policy.

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