Need clarity on coal block auction guidelines: Tata Power
As it gears up for coal block auctions, Tata Power has said there should be greater clarity on draft guidelines, especially on the minimum investment requirement in end-use projects to qualify for participation in the tendering process. As per the draft guidelines, a company should have invested at least 80 per cent of the total cost in end-use projects like power and steel to qualify for bidding in the auction process, Tata Power Managing Director Anil Sardana said in an interview. "What is the 80 per cent, whether it is the original cost or the revised cost," he added. The guidelines also suggest that a power unit should be ready to consume coal, he said, adding: "How many units should be ready one, two or all the units". Sardana applauded the new government's pace of working and decision making.
An ordinance has been notified to facilitate the allotment of coal mines to state-owned companies that need the fuel and also to private entities in businesses such as power, iron and steel, and cement for so-called captive consumption. Sardana said: "I guess the ordinance as well as the rules, the speed at which they have been brought and the depth with which the government has worked clearly augers well for what are the shape of things to come, its an amazing speed, its been a speed which is par excellence."
Tata Power, which has a target of generating 18,000 MW by 2022, has projects of about 3,000 MW capacity which are under various stages of execution. It further plans to focus on the distribution sector as part of its strategy to de-risk its power portfolio. "We are looking for more opportunities in distribution space," Sardana said, adding that it is exploring business opportunities in the African and Middle East regions. Tata Power is developing wind and hydro projects in Africa, Bhutan and Georgia, among others. The 126-MW Dagachhu hydel project, being developed in partnership with the Bhutan government, is expected to be commissioned soon.