The secretarial panel looking into the woes of the power sector has identified five key issues, including fuel supply constraints, for immediate execution to resolve the crisis.
A power sector official said approximately 18,500 megawatt of projects commissioned after March 2009 are likely to generate only 55 per cent of their actual output due to fuel (coal) supply crunch.
The Committee of Secretaries (CoS) headed by the Principal Secretary to the Prime Minister, Mr M. Pulok Chatterjee, was constituted following a meeting of the private power sector honchos on January 18. For the core areas identified, the panel will review the events that take place on or before February end, an official said.
Securing adequate coal and gas and getting compensation by way of fuel (coal/gas) acquired through e-auction and/or imports for power generation, is the most critical challenge faced by the developers today, the official said.
On the domestic coal supply situation, the panel will review the status on fuel supply agreements to be signed by Coal India for all projects up to the 11th Plan period (March 31, 2012).
Coal India has been unwilling to commit delivery of coal confirming to sanctioned linkage quantity for the last two years, the official said, adding no new Fuel Supply Agreement has been signed with the private developers since March 2009.
For allocation of gas for gas-based power plants, the power sector has been seeking a meeting of the empowered group of ministers (EGoM) on gas which has not met for more than two years. Nearly 8,000 megawatt of gas-based power projects ready for commissioning in 11th Plan was awaiting allocation. The group is to meet on February 13.
The power sector players were also seeking meeting of EGoM on UMPP to consider imported coal issues for Tata's Mundra 4,000 megawatt project and Reliance's (Anil Ambani Group) Krishnapatanam 4,000 megawatt project as well as for modifications of standard bid documents for forthcoming UMPPs. Sources said the EGoM is expected to meet either on February 20 or 24.
The sector also pressed for a meeting of Group of Ministers on Coal to consider final forest clearances for eight different blocks recommended by Prime Minister's Office in 2010, which includes Chhatrasal block linked with Sasan UMPP and Mahan block for Essar and Birla group.
Besides, they also wanted the Government to consider a policy of maximising coal production from captive coal blocks to enhance domestic production.
The Prime Minister's Office recently had directed the Ministry of Coal to put its suo motu policy for use of surplus coal on hold and asked it to hold inter-ministerial consultations to finalise the same.