Power ministry unveils norms for allocating coal linkage to plants without PPAs


Power ministry unveils norms for allocating coal linkage to plants without PPAs

Power plants not having power purchase agreements (PPAs) will start getting coal supplies or linkages under auctions from Coal India Ltd and Singareni Collieries Company Ltd in few months, which would help reduce stress in the sector.

According to methodology issued in this regard by the Union power ministry on Monday, Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL) will earmark coal mines for supply to such power plants and auctions would be done every quarter.

Earlier, PPA was a pre-requisite for getting coal linkage. But, the government relaxed the norms under SHAKTI, or the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India, policy this year in March.

For this purpose, the power ministry on Monday issued the methodology for the same. Read More

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