Coal linkages: 974 power firms line up for supply

The coal ministry has received applications for long-term coal linkage from central and state utilities, independent power producers (IPPs) and captive power producers (CPPs) for 974 power projects with a generation capacity of over 5.96 lakh Mw, as on July 31.

Of the 974 applications, 107 are from central and state utilities for capacity addition of 1,22,405 Mw, 434 applications from CPPs for 37,345.79 Mw and 433 from IPPs for a record 4.25,836.5 Mw capacity addition. The installed capacity of these power projects vary from 10 Mw to 5,280 Mw.

A coal ministry official told Business Standard: “Some of the applications had already been considered in the past by the standing linkage committee (long term) but deferred the decision due to various reasons. These applications will be taken up in due course to provide long-term coal linkage for the upcoming power projects.”

The official said the standing linkage committee (long term) would take up the proposals wherein the applicant had changed the category from CPP to IPP or enhanced or reduced the generation capacity or modified configuration.

According to the official, adequate reserves — coal reserves upto 1,200 metres deep — have been estimated at 277 billion tonnes as on April 1, 2010 and lignite reserves have been estimated at 39.07 billion tonnes as on March 31, 2009. Of the 277 billion tonnes, 110 billion tonnes of coal reserves have already been identified, 130.65 billion tonnes are indicated and 35.6 billion tonnes inferred.

The power ministry official said it had been pursuing with the coal ministry for an early clearances for both short and long-term coal linkages. “The issue has been discussed with the coal ministry on a regular basis. We are quite optimistic that the ministry will clear these applications expeditiously especially when it has projected a capacity addition of 1,00,000 Mw each in the 12th and 13th Five-Year Plans and most of which is expected to come through coal-based power projects.”

According to the official, Coal India Limited (CIL) has assured to supply about 600 million tonnes in 2016-17. However, the actual availability is likely to be 415 million tonnes leading to a shortfall of 185 million tonnes by the end of the 12th Plan.