Coal Ministry’s Standing Linkage Committee (Long-Term), SLC (LT), for the power sector will next week review the Power Ministry’s recommendation to provide long term linkage to Madhya Pradesh for 4,000 megawatt (MW) of upcoming thermal power capacity.
The anticipated date of coal drawl has been indicated as FY29 and FY30 by Madhya Pradesh and the duration of power requirement is for long-term. The SLC (LT) will review the recommendation in its meeting scheduled for November 26, 2024.
In July 2024, Power Ministry recommended to earmark long-term coal linkage to Madhya Pradesh under SHAKTI Para B (iv) to tie-up power for 4,000 MW through coal-based capacity in order to meet the required addition of coal-based capacity in the country.
Growing power consumption
Due to growing power consumption, the Power Ministry aims to add 80 gigawatts (GW) of additional coal-based capacity by FY32 and about 26 GW of coal-based plants are already under construction.
Consequently, the Power Ministry requested the states, including Madhya Pradesh, where resource adequacy studies have been completed to urgently plan to meet the gap by either adding new capacity through own resources or by floating power procurement bids under Tariff Policy, 2016 or under Para B (iv) of SHAKTI Policy.
According to the resource adequacy plan finalised for 2024–2035 for Madhya Pradesh, a requirement of an additional 4,100 MW of coal-based capacity by FY32 has been projected.
The Power Ministry has also clarified that the additional coal-based capacity requirement of 4,100 MW for the state is over and above the 1,230 MW (net) already earmarked under Para B (iv) of the SHAKTI Policy.
In September 2022, the SLC (LT) reviewed the coal linkages under Para B (iv) of SHAKTI policy.
During the meeting, the Central Electricity Authority (CEA) had informed that the MP Power Management Company (MPPMCL) in Madhya Pradesh undertook a bidding process for procurement of 1,230 MW of electricity on a long-term basis. This was from a new power station to be set up in the state by sourcing fuel from the earmarked coal linkage.
The SLC (LT) had then recommended for continuation of coal linkage earmarked under Para B (iv) of SHAKTI to Madhya Pradesh to the extent of power requirement procured through Tariff Based Competitive Bidding (TBCB).