The Standard Linkage Committee (STC) has decided to cancel the coal linkage supplies earmarked for Uttar Pradesh under SHAKTI scheme based on the discussion made in a review meeting held recently.
The provision spelt out under Para B(iv) of the SHAKTI policy underlines that “Power requirement of group of states can also be aggregated and procurement of such aggregated power can be made by an agency designated by the Ministry of Power or authorised by such states on the basis of tariff-based bidding.”
Under this scheme, the states were directed to carry-out tariff-based bidding to procure power on medium-to-long term basis at affordable rates, in return, the successful bidders would be allocated coal linkages by domestic coal companies for power generation.
Accordingly, the states of Gujarat, Uttar Pradesh and Madhya Pradesh were provided coal linkages for a capacity of 4,000 megawatt (MW), 1,600 MW and 2,640 MW respectively, for undertaking tariff-based bidding.
Responding to the call, both Gujarat and Madhya Pradesh initiated tariff-based bidding.
However, no such effort was made by Uttar Pradesh after the state’s regulatory commission had directed it to restrain from entering into long term contract for procurement of power from coal based thermal power plant till December, 2022.
This eventually led to the cancellation of coal linkage in case of Uttar Pradesh, while committee recommended continuation of the same for the remaining states to the extent of power procured through bidding process.
New Linkages for NTPC plants
SLC has also awarded coal supplies under various provisions upon request made by the country’s largest power producer-NTPC.
NTPC’s Kudgi power plant (2,400 MW) was granted extension in bridge linkage as a means of assuring fuel security after the plant surrendered the Bhalumuda coal block which was allotted to it for captive usage.
On similar grounds, Ukai and Wanakbori power plants of Gujarat State Electricity Corporation (GSECL) received extension after it had surrendered the Gare Palma-I coal block.
NTPC’s Telangana plant (1,600 MW) was recommended for coal linkage under Para B(i) of SHAKTI scheme. This came after the allocated Mandakini-B block was terminated by the government.
On the other hand, Singrauli power plant (1,320 MW) became eligible for extension in coal supplies via LOA route on account of delay in project development due to covid.
Meanwhile, not all the power plants of NTPC were successful in receiving grants for coal linkages.
Incidentally, company’s Lara plant (1,600 MW) was seeking an extension on account of lesser material availability from the allocated Talaipalli coal mine, which had commenced operation but is yet to attain its peak capacity.
However, the committee has deferred the case while directing the company to optimise coal production from the allocated mine.
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