State-run Coal India Ltd (CIL) has invited applications from independent power producers to take part in the auction of coal linkages under the Scheme for Harnessing and Allocating Koyala Transparently in India (Shakti), a notice said on Monday.
The miner asked “interested entities” to register on the website of auction firm MSTC Ltd “on or before August 7, 2017”.
In May, the Ministry of Coal had directed the coal producer that the miner may grant coal linkages to the power producers or independent power producers (IPPs) having long term power purchase agreements.
Citing the ministry’s letter, the notice said, “CIL/SCCL (Singareni Collieries Company Limited) may grant coal linkages on notified price on auction basis for power producers/IPPs having already concluded long term PPAs based on domestic coal.”
“Power producers/IPPs, participating in auction will bid for discount on the tariff (in paise/unit),” the ministry’s letter said.
“Accordingly, PPA may be amended or supplemented mutually between the developer and the procurer to pass on the discount to the procurer,” the letter said.
“All such power producers/IPPs may participate in this auction and bid for premium above the notified price of the coal company,” it added.
Source Link – ET
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