The standing linkage committee (SLC), in its recent meeting held last month, reviewed several petitions from power plants for granting of additional coal supplies via linkages.
These recommendations were proposed by the power ministry on behalf of plants which have failed to ramp up production from their allocated coal blocks, and have now turned to the coal companies to meet their demand.
NTPC’s plea deferred
The country’s largest power producer, NTPC, had requested extension of bridge linkages for its various plant facilities citing constraints in development of coal blocks that were allocated.
The term bridge linkage refers to a temporary arrangement of coal supply till the time the allocated captive coal mines become operational.
The power company had informed that its Badam, Kerandari, Chatti Bariatu and Chatti Bariatu South coal blocks have not commenced operation and are facing issues relating to forest clearance, land acquisition, and MDO appointment.
On the other hand, Dulanga and Talaipalli blocks have started coal production, but are yet to attain their peak rated capacity.
However, the SLC has turned a deaf ear to NTPC’s plea, claiming that there were lapses on the part of the power company in timely development of the coal blocks. The case has been deferred to the next meeting.
In contrast, a similar request made by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) for its plant facilities was accepted. These plants have been allotted Parsa and Kente blocks which are yet to commence production in the absence of final clearances from the state government of Chhattisgarh.
The SLC has granted extension of bridge linkage to these plants for a period of one year.
Decision regarding surrender of coal blocks
In a latest development, the Cabinet Committee on Economic Affairs (CCEA) allowed the Central and state-run public sector undertakings (PSUs) to surrender their non-operational coal blocks without paying any penalty.
Accordingly, the Gujarat State Electricity Corporation (GSECL) has decided to surrender its Gare Palma-I block that was awarded for its Ukai and Wanakbori plants. Likewise, NTPC has opted to return Bhalumuda block that was linked to its Kudgi plant.
In turn, these companies had sought long-term coal linkages for their plants as replacement.
The SLC, in its verdict, has made no intention of approving the long-term contracts until a uniform decision is finalized in all such cases where the allottees have applied for surrender of their coal blocks.
Till then, such plants have been asked to continue with the existing bridge linkages till cancellation of the block is approved. Post-cancellation, there would be a provision of a grace period of 90 days for continuing the supplies.
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