The power ministry has asked the coal ministry to issue directions to Coal India Ltd to start coal supply to the winners of coal contracts auctions without waiting for approval from the power regulator Central Electricity Regulatory Commission (CERC).
“Considering the urgent need of resolution of issues of stressed assets, ministry of coal is requested to advise CIL/SCCL to start coal supply provisionally after amended/supplementary PPA is signed between developer and the procurer (Discom). After obtaining approval of the appropriate commission, FSA may be signed,” an office memorandum issued by the power ministry last week said.
In a meeting held by the power ministry last month, representatives from banks expressed concerns about delay in issue of coal allocation letters to auctions conducted by CIL for PPA holders under Shakti, the office memorandum said. Signing of firm coal supply agreements may take 2-3 months after issue of the coal allocation letters as the requirement of PPA and approval of the appropriate commission may take time, it said. Read More…
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