No coal supply to projects failings to meet commercial output deadline: Power Ministry
The government plans to revoke the fuel supply assurances given to coal-based power projects that have failed to meet their commercial production deadline, according to a coal ministry official. The power ministry is preparing a list of projects that were scheduled to begin power generation between 2009 and 2013 but have missed the deadline, the official said, adding that coal supply to these projects will be stopped and the fuel redirected to projects that are ready but have not tied up supplies. The move follows a recommendation made by a panel on coal supply in mid-April that commercial production be made the primary requirement for coal supplies by state-run Coal India. Coal India had provisioned supplies to some 60,000 mw projects. The new norm could affect some 10,000 mw projects, people in the know said.
This rule, however, will not apply to projects that have faced delays due to reasons beyond the control of the promoters, if the panel is convinced, the official quoted earlier said. Earlier, the panel had decided to impose a penalty on projects that failed to adhere to the deadline, but later opted for scrapping fuel supply guarantees to enable coal supply to projects that are ready for generation but have not firmed up supplies. The coal ministry has already prepared a list of some 12,000 mw projects that are awaiting coal supplies to begin generation. These projects are now on the priority list and they will start receiving coal as soon as supply assurances from existing projects are revoked. "The power ministry is now working on a new priority list of projects, which will also include plants that were not included earlier," a senior Coal India official said.