Government plans coal supply to power plants, which are starved for coal due to lack of coal blocks, linkages or power purchase agreement.
Several power station in the country that were in trouble due to no coal blocks and linkages allocated to them can now take sigh of relief as government has planned coal supply to this coal starved power stations. Coal Ministry has decided that a specific quantity will be booked for this fuel starved power station.
The government has planned this move to protect the assets created to run this power station turning to NPA’s. The centre has further decided that e-auction will be conducted separately for the power plants holding power purchase agreement i.e. PPAs, offering a quantity of 5 MnT for long-term and another 5 MnT for other power firms having short-term PPAs or without PPAs. Further quantity can be altered according to prior performance of the power stations.
Sh. Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable in written reply to Lok Sabha has mentioned that floor price for the power producers holding PPA will price notified added with 20% premium. Whereas, those who have no PPA will have to pay 40% premium .
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