CoalMin seeks status of PPA from 8 firms by next week

These firms include NMDC and Neyveli Lignite, which have applied for 17 coal blocks

The Coal Ministry has asked eight firms, including NMDC and Neyveli Lignite, which have applied for 17 coal blocks, to submit the status of their power purchase agreements by next week.

"The companies who have not submitted the status of their power purchase agreements...So far are requested to furnish the same...To this ministry positively by April 22," the Coal Ministry said.

A power purchase agreement (PPA) is a contract between two parties -- one who generates electricity for the purpose of sale (the seller) and one who is looking to purchase electricity (the buyer).

The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation among others.

Other companies which have been asked to submit the status of PPA are Andhra Pradesh Power Generation Corp, Gujarat Industries Power Company and Kerala State Electricity Board among others.

Initiating the process of allocation of coal mines, the government had last year invited proposals from PSUs for alloting 17 blocks to them, mostly for captive power plants.

The blocks on offer have an estimated reserves of 8.45 billion tonnes.