An inter-ministerial panel will meet on May 23 to deliberate on coal linkages to the power sector, amid the power producers facing fuel supply issues.
“The meeting of the Standing Linkage Committee (SLC) (Long—Term) for power to review the status of achievement of milestones by the existing LoA (Letter of Assurances) holders in power sector and other items relating to existing coal linkages will be held on May 23,” a Coal Ministry memorandum said today.
The 13—member committee, to be chaired by Additional Secretary Coal, has members from the ministries like Power, Railways and Shipping, among others.
In the last meeting of the SLC held early this year, the panel has deliberated on various issues, including providing long-term linkages to a part of Adani Power’s project in Maharashtra.
The panel was of a view said that it would not be possible for it to recommend granting long-term coal linkage to a part of Adani Power’s project in Maharashtra and the government should take a decision on it after laying down general principles on the issue involved.
Adani Power Maharashtra Ltd (APML) proposed to set up a coal-based project. It was granted Letter of Assurance (LoA) on long-term basis for meeting the requirement of 1,180 MW.
However, for the remaining 800 MW, it was given LoA for tapering or short-term linkage. The company has sought its conversion to long-term linkage.
The company had requested that as the first unit of the power project is on the verge of commissioning and the pending allocation of alternate coal block, the tapering linkage be converted to long-term linkage.
Tapering linkage is provided to those coal consumers who have been allocated blocks for meeting the fuel requirement of their end—use plants but where the coal production does not meet the fuel needs.
Other issues that were discussed during the meeting include granting of coal linkages to Mahanadi Coalfields’ (MCL) 1,600 MW power plant and issuance of letter of assurances for washery reject—based power plants.