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The Power Ministry agreed to three separate windows of 3 months, 6 months and one year for short-term coal linkage auctions under the SHAKTI B (viii) (a) policy for thermal power plants not having power purchase agreements (PPAs), according to a release issued on Friday.
The Ministry, in consultation with the Ministry of Coal, will ensure its implementation. In order to make coal available for a longer period, the Power Ministry will review whether the duration of auction can be extended for more than one year. The issue of bank guarantee is also to be examined if duration has to be extended beyond one year, the release added.
Power Minister RK Singh on Friday issued the above directions after meeting members of the Association of Power Producers (APP) to understand their issues.
Singh instructed the Power Ministry to streamline and simplify the guidelines for short-term coal linkage auctions under the SHAKTI B (viii) (a) policy for thermal power plants not having PPAs.
As per the policy, the PPA — long term or medium term — needs to be submitted within two years after auction of coal.
The release stated that APP requested for extension of timeline in view of the lack of PPAs in the market. It also urged to reduce the bank guarantee.
The Power Ministry agreed to examine the request in consultation with the Ministry of Coal, the release said.
Liquidity infusion scheme
Meanwhile, the Minister also said that in the liquidity infusion scheme, equal treatment may be given to all gencos on first in first out (FIFO) basis. It was further suggested to examine the orders of the central electricity regulatory commission (CERC) in terms of recovery of depreciation and interest rate allowed for recovery.
In addition,APP also requested a separate window for auction of gas for power plants. The release said that the issue would be taken up with the Petroleum Ministry.
Besides this, the request for suitable amendment in the policy is being taken up through inter-Ministerial consultation and the Power Ministry advised independent power producers on reciprocal basis not to derail the regulation of power by Central gencos in case of non-payment of dues by discoms.
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