Power Cos ask govt to extend coal supply beyond scheduled time

Many power producers under 78,000 mw capacity list have requested the government to extend the supply of coal beyond the scheduled time to their plants under the tapering linkage policy, a move that may further delay the signing of fuel supply pacts with Coal India.

Tapering Linkage is the short-term linkage provided to those coal consumers who have been allocated captive coal blocks for meeting the fossil fuel requirements of their end use plants but production of coal from the alloted mines could not develop on time.

The development follows the Cabinet Committee on Investment recently asking for meeting timelines for signing of FSA for 78,000 MW capacity.

"Requests have been received from many developers for extending coal supplies beyond the scheduled time under the tapering linkage policy," an official said quoting a Coal Ministry document.

 There are 24 units with tapering linkages in the said 78,000 mw plants, the official said.

The official further said that such requests have been made on the ground that coal blocks allocated could not be developed as per the schedule due to delays on account of the mines falling in no-go areas and delay in environment and forestry clearances etc.

The Cabinet Committee on Economic Affairs has earlier approved coal supplies to power projects of 78,000 MW capacity, which are commissioned or to be commissioned during the period April 1, 2009 and March 31, 2015.

The Coal Ministry had earlier set a deadline of August 31 for signing of the FSAs which could not be met. Further, the second deadline of September 6 was also not achieved.

Coal India has so far entered into pacts with 142 power producers. The coal PSU has to sign 173 FSAs with power companies for a total capacity of 78,000 MW.