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Priority allocation of coal mines for power sector -Govt.
V K Gupta | 17 May 2012

Government has decided to allocate coal mines to power sector on priority basis.

Priority allocation of coal mines for power sector –Govt.

Wednesday May 16, 2012

New Delhi

Power sector is being given priority in allocation of coal blocks as well as in authorization of Letter of Assurance for long term coal linkage, Minister of State for Coal informed Lok Sabha.

Out of 195 captive blocks having 44.24 Billion Tones of geological reserves that stand allocated till date, power sector has been allocated 81 coal blocks, including coal blocks for tariff based bidding, having reserves of 24.15 Billion Tones. Based on the recommendations of the Standing Linkage Committee (SLC (LT) ) for Power, the subsidiary companies of Coal India Limited (CIL) have issued 172 Letter of Assurance covering about 1,08,878 MW for setting up power projects in the country.

The Minister further said thatto ensure regular coal supply to the power producers, Ministry   has directed Coal India Ltd. (CIL) to sign fuel supply agreements (FSA) for    supply of coal as per Annual Contracted Quantity with assured level of 80%.This would be applicable   to the power plants which have been commissioned and would get commissioned up to March .2015.  

The Minister informed that   CIL  has  received a request from NTPC  to consider signing of the FSA for the additional  units of their  existing  power stations  on the same parameters as done  with  their  existing  plants, but with revised trigger point on disincentive as per the Government directives.

Meanwhile the coal shortage at number of thermal plants continues as per latest daily report of Central Electricity Authority. There are 11 thermal plants in country having less than 4 days coal stock and another 17 have less than 7 days coal stock.

Rosa and Anapara thermal plants have nil stock as they have failed to import coal... Jhajjar, Farakha super thermal, Durgapur steel, and Mejia thermal plants are facing coal problems due to inadequate or non allocation of coal by CIL.