Ascertaining sufficient electricity generation for the nation, government to allow power producers with FSA to participate in coal e-auction.
Indian government has decided to allow all power producers of the country to participate in coal e-auction. This implies that the power players who already have captive mines or fuel supply agreements (FSAs)/memorandums of understanding (Mou) with CIL as source of raw material will not be restricted to participate in coal e-auction as earlier.
However, the centre has made it clear that these power players will be allowed to bid only for the quantity that is short of their total requirement. The quantity supplied to power producers will be the same as mentioned in their power purchase agreements (PPAs).
In order to maintain transparency in distribution of coal, the ministry had mentioned certain guidelines. According to the same, participating power producers will have to furnish certificates of their PPAs with the utilities mentioning their coal requirements and the quantity of which they are falling short.
It should be noted that centre has set a production target of 550 MnT for CIL in FY16 and had enjoined CIL to allot 10% ie 55 MnT of the production quantity through coal linkages.
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