First coal bidding under SHAKTI a success, quantity on offer sold out

Ten private power producers offer discounts in power tariff of 1-4 paise a unit in order to secure coal supply

The new scheme of the Centre to provide coal to private power units saw the entire offered amount contracted by the power developers. Leading private sector players bid for the coal offered by state-owned Coal India Limited quoting discounts in their power tariff in range of 1-4 paise per unit.

The bidding was for power units with power purchase agreements (PPAs) but no long-term coal supply. Under the new programme for allocating coal to power units -- Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) -- Coal India offered assured coal supply to units through bidding. The units had to quote the discount in their power tariffs that they would offer after getting cheaper coal from the company.

The total quantity booked was 27.8 million tonnes of coal. Close to 9.2 million tonnes of coal saw discount bidding of 2 paisa, followed by 3 paisa discount quoted for 9.08 million tonnes. Major players which participated in the bidding were Adani Power, GVK Power, Bajaj Hindustan, GMR and Reliance Power. Officials said all the 10 players which were participated in the bidding would get coal supply in range of 70-80 per cent of their demand.

The total power generation capacity which would receive coal is 9,000 Mw and Coal India executives said it would help generate 47 billion units per annum and a savings of Rs 125 crore every year to the consumers for 25 years.

Coal India did not disclose the plant wise allocation of coal.