Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
May 23, Tuesday 2017 10:28 PM       

       HEADLINES: Main accused in Payyannur murder case held                                              Kalabhavan Mani: CBI registers case of unnatural death                                              Caretaker arrested for assaulting children in daycare facility                                              One killed in accident                                              Vizhinjam: CAG says Adani Group to win extra income of Rs. 290 bn                                              Sukhoi aircraft missing near China border                                              Cow vigilantes not above law: Athawale                                              Indian Army destroys Pak posts in Nowshera, releases video                                              Rajini fans stage protest against fringe outfits                                              Autopsy report suggests Asphyxia as cause of IAS officer Anurag Tiwari death                                              19 killed, 50 injured in blast at pop concert in UK                                              Pak presses ICJ for early hearing of Jadhav case                                              S Korea fires at object flying near border with Pyongyang                                              Pak refutes India's 'claims' of destroying its posts in Nowshera                                              'James Bond' star Sir Roger Moore dies at 89                                              ICC promises ‘robust’ security for Champions Trophy after Manchester attack                                              Kaumudi Facebook
       BUSINESS Next Article: Markets conquer new peaks, Nifty scales 9,500  
       Govt clears new coal linkage policy
 
         Posted on :21:43:14 May 17, 2017
   
A A
       Last edited on:21:43:14 May 17, 2017
         Tags: Govt clears, new coal linkage policy
 
NEW DELHI: The government today approved a new policy under which fuel supply to the power sector will be either through the auction route or power purchase pact based on competitive bidding of tariffs.
 
The move may ease stress on account of non-availability of linkages to power sector projects.
 
The decision was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.
 
"The coal availability scenario has now emerged from scarcity to adequacy," the Coal Ministry said in a statement.
 
"In this adequate coal availability scenario, the present policy proposes a fading away of the old linkage allocation policy and emergence of a new linkage allocation policy based on transparent and objective criteria for the optimal utilisation of the natural resources," it said.
 
The CCEA has approved the signing of Fuel Supply Agreement (FSA) with the Letter of Assurance (LoA) holders, it said.
 
Allocation of linkages for power sector shall be based on auction of linkages or through Power Purchase Agreement (PPA) based on competitive bidding of tariffs except for the state and the central power generating companies and the exceptions provided in Tariff Policy, 2016, it said.
 
PPA is a contract between two parties, one which generates electricity and one which is looking to purchase it.
 
"Coal drawal will be permitted against valid long-term PPAs and to be concluded medium term PPAs," the statement said.
 
CCEA approved "fading away of the existing LoA-FSA regime and introduction of a new more transparent coal allocation policy for power sector, 2017-SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India)," it said.
 
Allocation/grant of linkages will be based on auction and/or tariff based bidding, it said, adding that the policy attempts to make optimal allocation of the vital natural resource across the power units.
 
As per the new policy, thermal power plants (TPPs) having LoA will be eligible to sign FSA after ensuring that the plants are commissioned, respective milestones met, all specified conditions of the LoA fulfilled within specified timeframe and where nothing adverse is detected against the LoA holders and the TPPs are commissioned before March 31, 2022.
 
TPPs, part of 78000 mw, which could not be commissioned by March 31, 2015 will now be eligible for coal drawal if the plants are commissioned before March 31, 2022.
 
Actual coal supplies to all TPPs will be to the extent of long term PPAs or medium term PPAs to be concluded in future and coal linkages will be granted to central and state Gencos on recommendations of Power Ministry.
 
Coal linkages will be granted on auction basis for Independent Power producers (IPPs) with PPA based on domestic coal. The IPPs participating in auction will bid for discount on the existing tariff. The discount on tariff would be adjusted from the gross amount of bill at the time of billing.
 
"The future coal linkages for supply of coal to IPPs without PPA shall be on the basis of auction where bidding for linkage shall be done over the notified price of coal company.
 
The LoA shall be issued to the successful bidders and FSA signed after meeting the terms of LoA," it said.
 
Linkages will be earmarked to the states where any linkage quantity unutilised for two years will lapse.
 
States may indicate the earmarked linkages to the discoms, which may undertake tariff based competitive bidding on long-term and medium-term PPAs.
 
Linkages, for full normative quantity, shall be granted for setting up Ultra Mega Power Projects (UMPP).
 
Coal linkages, for IPPs having PPA based on imported coal, shall be made available through a transparent bidding process. The auction done on the basis of linkage allocations to IPPs will result in cheaper and affordable power for all.
 
The coal supply to the TPPs has been made as per the provisions of the New Coal Distribution Policy (NCDP), 2007.
 
Till 2010, Coal India (CIL) issued LoA for approximately 1,08,000 MW capacity and no new LoAs were issued thereafter due to the prevailing scarcity scenario. The CCEA in 2013 had directed CIL to sign FSA with TPPs of about 78,000 MW capacity.
A A
       BUSINESS
Next Article: Markets conquer new peaks, Nifty scales 9,500
 
 
BUSINESS HEADLINES
Sensex sheds 206 pts on profit-booking  
RBI refuses to disclose list of loan defaulters  
Nifty pares initial gains, ends flat  
Maharashtra Assembly passes GST Bill  
GST is Modi Govt's 'biggest achievement': ASSOCHAM  
Exporters to get tax refund under GST within 7 days: Nirmala  
GST won't affect financial autonomy of local bodies: Maha govt  
GST: Fin Min warns industry against hiking prices arbitrarily  
GST Bill is going to be consumer friendly: Jaitley  
Sensex surges to record high in late morning trade  
AI starts direct flight between Delhi, Stockholm  
Paytm raises $1.4 bn funding from SoftBank  
Sensex dives 224 pts, Nifty cracks below 9500  
Sensex, Nifty extend bull run, hit record highs  
BSNL signs pacts with Facebook, MobiKwik  
Govt clears new coal linkage policy  
Markets conquer new peaks, Nifty scales 9,500  
Gold climbs by Rs. 55 on positive global leads  
11 PIOs in Forbes's list of best venture capitalists  
Digitisation will curb shadow economy, says Meghwal  
Snapdeal-Flipkart deal may leave staff richer by Rs 193 cr  
I-T dept launches facility to correct errors in PAN, Aadhaar  
Idea Cellular Q4 loss at Rs 325.6 cr as Jio entry takes toll  
'AI can play key role in good governance'  
Coal Mines PF merger with EPF will benefit workers: Goyal  
 
Do you support girl's action against 'Swami', who allegedley abused her?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy