ASSURED FUEL LIKELY FOR MORE POWER UNITS

NEW DELHI: In a move that could benefit coal-fired power projects aggregating 20,000 MW set to come up by the end of 2016 but without any assured supply of the fuel, the power ministry has proposed that to start with, they be given at least 50% of the normative coal requirement to run the plants at a plant load factor (PLF) of 85%. If the plan materialises, these power plants will have a benefit similar to the one enjoyed by scores of other post-2009 power plants with a combined capacity of 78,000 MW that, under government-mandated fuel supply agreements (FSAs) with Coal India, are assured comfortable levels of fuel supplies till end-FY17.

 

In a Cabinet note prepared by it, the power ministry has also said that supplies could be ramped up in due course depending on coal availability. If CIL cannot meet the supply requirements under the new FSAs out of its own production, it can import coal to make up for the shortfall and resort to price pooling to mitigate the i

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