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The Cabinet Committee on Economic Affairs (CCEA) is likely to take up a Coal Ministry proposal on Thursday for extension of tapering linkages beyond three years.
Tapering linkage is a mechanism whereby coal is supplied on a temporary basis to power projects which have been allotted coal blocks but have not started mining yet.
In the current norm, fuel supplies based on tapering arrangement are provided only for three years (75 per cent in the first year; 50 per cent in the second year and 25 per cent in the third year). The nodal Ministry proposes to extend tapering linkages ‘beyond three years or till such time when coal production actually starts’ for such projects.
This proposal, if granted clearance by the CCEA, would immediately benefit power plants of 4,350 MW being set up by Sterlite Energy, Chhattisgarh State Electricity Board, GMR Energy and Gujarat Mineral Development Corp, a Coal Ministry official told Business Line .
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