The Cabinet Committee on Economic Affairs (CCEA), on Thursday, gave its go ahead for coal supply to nine more power projects, including those of GMR and Sterlite Industries, which had failed to develop mines allocated to them due to environment and other issues.
“The CCEA has approved the supply of coal to nine of 24 units in which development of coal block is delayed due to the ‘Go-No-Go’ policy of the Ministry of Environment and Forests on the fuel supply agreement (FSA) basis, subject to review/readjustment wherever necessary,’’ an official statement said.
Power Ministry officials said two power projects of Sterlite Industries, two of GMR and two of KSK Mahanadi Power are among those which will get coal supplies. Power plants, whose mines are not developed in the absence of environmental clearances, get coal supply for three years as per the tapering linkage policy.
While the quantity of the fuel, admissible under the Tapering Linkage Policy, will be supplied through the FSA, the additional quantities will be supplied on a memorandum of understanding basis, subject to availability of coal.
The position would be reviewed at the end of first, second and third year by the Coal Ministry along with the Power Ministry and the Planning Commission. The CCEA had earlier approved coal supplies to thermal power plants (TPPs) with a capacity of 78,000 MW. There are 24 TPPs with tapering linkages within 78,000 MW capacity.
Only the quantities admissible under the tapering linkage policy were approved for such plants. Subsequently, requests were received from developers and recommendations by the Power Ministry that some of the TPPs 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.