The Cabinet Committee on Economic Affairs (CCEA) has deferred a proposal for auctioning coal linkages for the power sector, and subsequently sent the proposal to the Group of Ministers (GoM) for further deliberation.
The Coal Ministry has worked on a mechanism to auction coal linkages to power plants since 2015. The mechanism will be applicable to both new power plants, and also, power plants already operating with coal linkages.
Accordingly, existing power plants, having power purchase agreements but no coal linkage, will be able to participate in coal linkage auctions on the basis of a premium of the notified price of Coal India Limited.
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