APP asks PowerMin to take issue of CIL charging premium to Cab

Terming charging of premium over and over Coal India notified price from power producers as "discriminatory", the Association of Power Producers (APP) has asked the Power Ministry to take the issue to the Cabinet.
"Levy of premium by CIL (Coal India Ltd) is without any rationale, contrary to the CCEA (the Cabinet Committee on Economic Affairs) decision and is also jeopardising project viability," APP said in a letter to Power Secretary P K Sinha.
"We request you to kindly take this issue to the CCEA for advising CIL to supply coal to the entire 76,501 MW and 4,660 MW capacity at CIL notified price applicable for power sector and maintain price parity for these power projects," the letter said.

It added that coal is being offered from mines facing logistic constraints to the 4,660 MW capacity under MoU route, having lower priority compared to 76,501 mw capacity. This involves huge additional coal handling and transportation cost.
Moreover, CIL subsidiaries are also charging a premium in excess of 40 per cent over and above the CIL notified price applicable for the power sector, it said.
It also said that CCEA has approved a mechanism for coal supply to power projects having long-term power purchase agreement (PPA) with discoms.
Coal is the mainstay of country's energy programme as 70 per cent of power generation is dependent on the dry fuel. Coal India accounts for over 80 per cent of the domestic coal production.