Inadequacy of coal supply by the state-run Coal India Limited (CIL) has rendered several captive power plants (CPP) in India to face severe coal shortage, affecting the operations.
The Indian Captive Power Producers Association (ICPPA) has said that the coal supply shortage might eventually lead to the closure of the plants, and in view of this, the association urged the Coal Ministry to intervene in the situation. Moreover, ICPPA has said that CIL should supply coal to the captive units at the same prices as to the integrated power plants. Highlighting the price disparity, the association said that the CPPs are sold coal by CIL at around 20% higher rate than to the integrated power plants.
ICPPA has appealed to the government to intervene into the matter as CPPs are suffering huge financial losses; and is forced to procure coal from alternate sources at higher prices.
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