Inter-ministerial panel on coal linkages to meet next week

An inter-ministerial panel is expected to meet next week to review the status of existing coal linkages to various sectors, including power.

“”...the meeting of the Standing Linkage Committee (Long-Term) for power/sponge/cement sectors to review the status of existing coal linkages/LoAs (Letter of Assurances) and other related matters will be held on November 27,” according to a Coal Ministry memorandum.

Finance Minister Arun Jaitley had announced in the 2014-15 Budget that adequate quantity of coal will be provided to power plants that are already commissioned or would be commissioned by March 2015 to unlock dead investments.

The Power Ministry had earlier moved a draft Cabinet note to ensure coal linkages for power projects which are already commissioned or are likely to be commissioned by March 2015, a source had earlier said.

The Power Ministry had sought suggestions from various ministries, including coal, finance, law and environment, on its draft note that seeks to ensure coal supplies for the thermal power plants, the source said.

The approval of the CCEA is also being sought for supply of coal linkages to the power plants being commissioned after March 2015 and up to the end of 12th Plan Period, i.e. 2016-17, the source added.

These are the power plants which neither have letter of assurances nor fuel supply agreements, the source had said.

During the CCEA meeting in June last year, it was decided that the state-owned Coal India (CIL), which accounts for over 80 per cent of the domestic coal production, will sign fuel supply agreements for about 78,000 MW capacity for which linkages were earlier granted by way of Letter of Assurance issued by the ‘Maharatna’ firm.

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