Ministry allows captive power plants to take part in Coal India e-auctions

Debabrata Das New Delhi | Updated on January 23, 2018

But need to pay 20% more than the price applicable for the power sector

The Coal Ministry has made a one-time exception to allow captive power plants to participate in the e-auction for coal by Coal India.

In a letter to Coal India last week, the Ministry said that 8.5 million tonnes may be offered under the traditional ‘forward e-auction’ for power producer up to March 31, 2016.

“Captive power plants can provide 49 per cent of their power generated to the grid. Further, captive power plants shall not draw power from the grid to the extent of their own generated power, that is 51 per cent of the capacity,” the Ministry said.

It added that since captive power plants are treated under the non-power sector, such plants will need to pay 20 per cent more than the price applicable for the power sector.

Further, power plants participating in the e-auction will not require a power purchase agreement. Plants getting commissioned in 2015-16 can also participate but they would require a commissioning certificate from the Central Electricity Authority before coal supplies begin.

Coal India will also inform the state electricity distribution utility, PTC, power exchange and other relevant authorities. Such authorities will then issue a certificate to the power producer with a copy to Coal India regarding the power supplied by them during the quarter.

Published on October 20, 2015

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