Panel clears coal supply for Torrent's Gujarat replacement power plant

The Standing Linkage Committee recommended long-term coal linkage for Torrent Power's proposed Gujarat plant and approved coal supply proposals for projects in Madhya Pradesh and Rajasthan

The Ministry of Coal’s Standing Linkage Committee (Long-Term) has recommended granting long-term coal linkage for Torrent Power’s proposed 800 megawatt (Mw) replacement power plant in Gujarat by treating it as a special brownfield project under the revised SHAKTI Policy.

 

The committee accepted the Ministry of Power’s contention that the proposal warranted special consideration because Torrent’s existing 362 Mw Sabarmati Thermal Power Plant in Ahmedabad is being relocated after the Gujarat government decided to utilise its ash pond land for the development of an international-level sports facility. Based on this interpretation, the panel recommended earmarking coal linkage for 724 Mw capacity to the state for utilisation by Torrent’s proposed 800 Mw replacement plant.

 

The power ministry argued that the relocation was driven by a public infrastructure requirement rather than a commercial decision by the company. It cited Paragraph 5.2 of the Tariff Policy, 2016, which permits a private power producer a one-time expansion of up to 100 per cent of its existing generating capacity, with the tariff determined by the regulator rather than through fresh competitive bidding.

 

Based on this provision, the ministry argued that Torrent’s existing 362 Mw Sabarmati plant and a permissible one-time expansion of an equivalent 362 mw, taking the eligible capacity to 724 Mw, should qualify for coal linkage as a special case even though the replacement plant will be built at a new location.

 

Coal India has been asked to identify the source of coal, the quantity to be supplied, the likely mode of dispatch and the representative quality of coal.

 

Apart from the Torrent proposal, the committee also approved long-term coal linkage for Madhya Pradesh’s proposed 660 Mw ultra-supercritical unit at the Satpura Thermal Power Station, a brownfield project that will replace four ageing generating units.

 

It also granted Rajasthan a one-year extension to utilise coal linkage already earmarked for 3,299 Mw of coal-based capacity after delays in the state's tariff-based competitive bidding process.

 

In addition, the committee extended bridge coal linkages by one year for the three 800 mw units of the Patratu thermal power project of Patratu Vidyut Utpadan Nigam Limited (PVUNL) and four thermal power stations operated by Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, as delays in operationalising their captive coal blocks continue to necessitate interim coal supplies from Coal India.