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Government seeks Gridco, OPGC views on coal distribution policy of Centre

Published: 19th August 2013 12:33 PM  |   Last Updated: 19th August 2013 12:33 PM   |  A+A-

The State Government has sought the views of power trading utility Gridco and the Odisha Power Generation Corporation (OPGC) on the new coal distribution policy of the Centre.

The Centre has recently modified the coal distribution policy taking into account the overall domestic availability and the likely requirements of the identified thermal power plants (TPPs).

A presidential directive last month asked Coal India Limited (CIL) to enter into fuel supply agreement with TPPs for assured supply of coal. The Centre has approved a revised arrangement for supply of coal to the identified TPPs of 78,000 MW, said an official memorandum of the Ministry of Coal.

As per the new policy, CIL will sign fuel supply agreement (FSA) for the domestic coal quantity of 65 per cent, 67 per cent and 75 per cent for annual contracted quantity (ACQ) for the remaining years of the 12th Plan, the memorandum said.

Earlier, the coal distribution policy stated that CIL will supply 100 per cent of the committed quantity to power plants at prices to be notified by the coal PSU.

It also mentioned that in order to meet the domestic requirement, CIL would import coal as required from time to time, if feasible and adjust overall price accordingly.

“To meet its balance FSA obligations towards the requirement of the said 78,000 MW TPPs, CIL may import coal and supply the same to the willing power plants on cost plus basis. Power plants may also directly import coal themselves, if they so opt,” the memorandum said.

The National PSU and its subsidiaries including MCL has been advised to take further action accordingly.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, on June 21 asked CIL to sign FSAs for a total capacity of 78,000 MW including cases of tapering linkage, which are likely to be commissioned by March 31, 2015.    

Last year, the Centre issued a Presidential directive asking CIL to supply at least 80 per cent of the quantity committed to power companies.

HIGHLIGHTS

■ A presidential directive last month asked Coal India Limited (CIL) to enter into fuel supply agreement with TPPs for assured supply of coal

■ To meet its balance FSA obligations towards the requirement of the said 78,000 MW TPPs, CIL may import coal and supply the same to the willing power plants on cost plus basis

■ The National PSU and its subsidiaries including MCL has been advised to take further action

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