Wednesday 25 December 2013

Coal Demand May Not Exceed Over 60,000 Mw Capacity

Requirement of coal under the fuel supply agreements would not be for more than 60,000 Mw by 2015 due to various reasons, including slippages in the schedule for commissioning of projects, the Coal Ministry has informed state-owned CIL.



"The coal drawl would not be more than 60,000 Mw by March 2015 due to slippage in commissioning schedule, constraints in evacuation of power and due to not having long-term PPA," the Coal Ministry has said in a letter to CIL Chairman and Managing Director S Narsing Rao.



"The actual lifting of coal by power projects of 78,000 Mw capacity approved by the CCEA (Cabinet Committee on Economic Affairs) has not exceeded 37,695 MW so far," it said.



"It may also be confirmed whether as per commissioning schedules/PPA (power purchase agreement) provided so far, the total supplies would not exceed (the power projects' capacity of) 60,000 Mw up to March 31, 2015," it added.



As on date, the total commissioned capacity is 41,461 Mw (38,821 Mw long term linkage + 4,640 mw tapering linkage) out of the 78,000 Mw capacity approved by Cabinet for signing of FSA (Fuel Supply Agreements), the letter said.



Coal Minister Sriprakash Jaiswal had earlier said that 85 percent fuel supply pacts have been signed and the remaining would also be done once technical glitches are addressed.



Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 Mw capacity should be met.



Two deadlines set recently for signing of the fuel supply agreements by CIL with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.



Coal India has to sign 173 FSAs with power companies for a total capacity of 78,000 Mw as directed by the Coal Ministry.


Source:- business-standard.com





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