Coal linkages may be extended to new super critical projects

Coal linkages granted to old power projects will now be automatically transferred to the new plants of super critical capacity as the government aims to provide round the clock electricity to all.
"In view of the multi-fold benefits of Super critical units like better efficiency, lower emissions and optimisation of land & water usage, Letter of Assurance (LoA)/ Linkage granted to the old plant shall be automatically transferred to the new plant of Super critical capacity," an official said.
If the capacity of the new super critical plant is higher than the old plant, additional coal is likely to be given priority, subject to the availability of the dry fuel, the official said.

"This policy shall be applicable to pre-NCDP (New Coal Distribution Policy) plants in public sector only, which have already been granted long term Linkages/Letter of Assurance (LoA), " he said.
Automatic transfer of linkages/ LoA will be permitted only when the new plant is set up within the state in which the old plant was located. Old unit which has completed its useful life and is being replaced needs to be retired in a phased manner, the official said.
The proposal for formulation of the policy for automatic transfer of coal linkage was granted to the old plants while scrapping and replacing them with new plants was placed before the Inter-ministerial panel on coal linkages in its meeting held in 2014.

"Based on the recommendations of Ministry of Power that new plants will come up in a staggered way by the end of the 13th Plan and may also spill over to the 14th Plan, the Committee recommended certain guidelines," the official said adding that based on fresh recommendation of Ministry of Power, the issue was re-examined.
Power plants with super critical capacity are of 650 MW and above.