PlanCom prepares Cabinet note on coal for captive power plants

Chaturvedi panel suggested that the Coal Ministry should provide coal to CPPs already commissioned

The Planning Commission has circulated a Cabinet note seeking to implement the recommendations of the B K Chaturvedi Committee to ensure coal supply for captive power plants (CPPs).

The note for consideration of the Cabinet Committee on Investment suggests that the Coal Ministry sign initial pacts as envisaged to provide coal to consumers, including CPPs, which cannot be covered with letters of assurances or fuel supply agreements, Coal Ministry sources said.

The Chaturvedi panel also suggested that the Coal Ministry should provide coal to CPPs already commissioned, including those likely to start by March 2015, by making minor adjustments in supplies to other consumers, a source said.

Another source added that the Chaturvedi Committee had recommended that the power ministry "identify CPPs willing to opt for open access without surcharge to tie up power supply from the power plants."

The CCI had earlier directed that an inter-ministerial group (IMG) under the Member (Energy) of the Planning Commission identify projects in sectors other than power that require coal for captive power plants.

The Planning Commission constituted the IMG under the chairmanship of Chaturvedi. The eight-member panel includes representatives from the coal, power, steel and mines ministries.