The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Coal India Limited (CIL) on Friday, June 21, 2013, regarding the supply of domestic coal to the Thermal Power Plants (TPPs) in order to fulfill their requirements. CIL will sign Fuel Supply Agreements (FSA) for a total capacity of 78000 MW which will include cases of tapering linkage. According to the Union Minister P Chidambaram these agreements are likely to be commissioned by 31st of March, 2013, while the actual coal supply will begin after the long term Power Purchase Agreements (PPAs) are tied up.
Coal India Power Plants
FSAs will be signed, considering the overall domestic availability and the actual requirements for domestic coal quantity of 65%, 65%, 67% and 75% of Annual Contracted Quantity (ACQ), for the next four years of the 12th Five Year Plan.
CIL might import and supply coal on cost plus basis to the TPPs according to their requirements in order to fulfill the responsibilities of FSA. The TPPs can also import coal on their own with prior instructions from Ministry of Coal (MoC) in this regard, said the Union Minister P Chidambaram.
Central Electricity Regulatory Commission (CERC) suggested giving a pass through to high costs of imported coal. In order to supplement the New Coal Distribution Policy (NCDP) some suitable orders will be issued by the MoC. Also certain advisories related to modifications in bidding guidelines will be issued to CERC/SERCs by the Ministry of Power (MoP).
Mr. Chidambaram further said that before supplying coal to TPPs with 4660 MW investigations will be done regarding those who have no connections with coal, but are likely to be commissioned by 31.03.2013. The investigations will not affect the above decisions, he further added.