PowerMin seeks coal linkages for Essar Power, Monnet, 4 others

The Power Ministry has sought coal linkages for plants of six companies, including Essar Power, stating that they meet the criteria adopted for fuel supply to projects of 4660 MW.
The six firms also include Monnet Power and GVK Power.
The Cabinet Committee on Economic Affairs (CCEA) last year had directed that coal may be supplied to power plants of 4,660 MW and other similarly placed power plants that meet criteria like having no fuel linkage but likely to be commissioned by March 31, 2015, have long-term PPAs and a high bank exposure.
The power ministry had last month said in a letter that "all these projects have made huge investments with corresponding debt exposure to public sector banks and financial institutions. However, their linked mines are not ready for production due to delays in getting various clearances," according to an official document.

"In view of the above, it is the considered view of the MoP (the Ministry of Power) that these projects meet the criteria adopted to identify 4660 mw and coal supplies need to be ensured for these projects," it said.
It also said projects have been commissioned or are likely to be commissioned by March, next year.
Some of these projects, includes Essar Power MP Ltd's Mahan TPP (Thermal Power Plant), Jindal India Thermal Power Ltd's Derang unit-2 and Monnet Power's Monnet Malibrahmani TPP (Unit 1).
These power plants are under the category of "similarly placed power plants expected to be commissioned by March, 2015 requiring tapering linkage," the document said.