Inter-ministerial panel on linkages to meet next week

The inter-ministerial panel on coal linkages will meet next month to deliberate on the issues related to power projects that were granted tapering linkages by Coal India Ltd (CIL) for signing fuel supply pacts.

The move comes at a time when two earlier deadlines set by the Coal Ministry for the singing of FSAs could not be met.

"The meeting of the Standing Linkage Committee for power to discuss the issues relating to the projects granted tapering linkage as per MoP's (Ministry of Power) revised list for which a Presidential Directive have been issued to CIL for signing of FSAs will be held on October 4," Coal Ministry said in an official memorandum.

However, the ministry said the agenda for the meeting will be intimated in the due course.

Tapering Linkage, or coal supply, is provided by CIL to those power projects which have been allocated captive blocks to meet their requirements, but where the production has not started.

Earlier, the Cabinet Committee on Economic Affairs (CCEA) had asked CIL to sign FSAs for a total capacity of 78,000 MW, including cases of tapering linkage, which are likely to be commissioned by March, 2015.

The Coal Ministry had set a deadline of August 31 for signing of FSAs which could not be met and was extended to September 6.

CIL has so far signed 142 FSAs with power firms having a capacity of about 65,000 MW. The state-owned firm has to sign 173 FSAs for a capacity of 78,000 MW.