Govt To Give Priority To State Power Producers For Coal Supply; Pvt Plants In Lurch


Govt To Give Priority To State Power Producers For Coal Supply; Pvt Plants In Lurch

The government has asked Coal India Ltd and its subsidiaries to prioritise coal supply to state power producers like NTPC, leaving private electricity plants in a lurch, multiple sources said. The coal ministry has directed CIL to prioritise the coal supply to select central and state government-owned power houses under the pretext of building coal stocks at these plants.

Following this, all subsidiaries of Coal India like South Eastern Coalfields Ltd (SECL) have been directed to supply coal to state power generators such as NTPC. This has come at the cost of private power producers, who are running out of feedstock used to produce electricity. Sources in private producers say rationally Coal India should give first priority to those plants having critical coal stocks.

Next should come plants facing supplies below contractual obligations and then to most efficient plants, irrespective of ownership. Preferential and priority distribution should not be limited to public sector, they said, adding that private power plants should not be discriminated against. As per the sources, following the instruction from coal ministry, Coal India has its subsidiaries like SECL to supply 25 rakes per day of coal to NTPC’s Korba, Mouda and Bhilai power plants and such other state power plants. Read more

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