Indian Captive Power Producers Association (ICPPA) has shown their disagreement towards Coal Ministry’s decision to terminate all the coal linkages allotted to non-IPPs after June’16.
The association of captive power producers has shown its dissatisfaction for centre’s determination to allot coal linkages to non-regulated sectors till June’16. Centre has decided to supply coal from CIL’s production to non-regulated sector to satisfy the unmet coal demands through coal linkages. The policies, process and mechanism for the same was to be reviewed in every five years .
But later centre decided to auction coal linkages annually instead of once in every five years for unregulated sectors. The government has proposed that those coal linkage allotments valid till 30 June’16 will not be renewed in July’16, as was the process earlier. Rather such linkages will then be presented in forthcoming auction.
The members of ICPPA claimed that this proposal will interrupt the working of CPPs and also may create an atmosphere of disquiet among investors who have made huge investments in various industries in past years.
It should be noted that 2 days ago PMO asked coal ministry to increase coal linkage to all consuming sectors, including power. PMO’s is in accordance with the view to provide sufficient coal supply to non-regulated sectors.
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