Priority allocation of coal mines for power sector –Govt.

Indian Power Sector

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 that to 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.