Power project developers facing coal crisis have pinned their hopes on the meeting called by PM Manmohan Singh on Tuesday to review the progress of key infrastructure sectors like coal and power. “We have very high expectations from the meeting,” Ashok Khurana, director general, Association of Power Producers, told FE.
Coal India CIL) has not signed fuel supply agreements (FSAs) with power generators post March 31, 2009. As a result, 18,000-20,000 mw capacity does not have confirmed FSAs, which entails coal shortage of 90 million tonnes.
“Now that private players have shown an appetite for investment, the coal non-availability would make the investment redundant,”
Khurana added. CIL sold about 45 mt, or 10%, of its coal production in FY2010-11. The price realisation was about 80% higher compared to coal supplied by the public sector coal producer to power plants under FSA.
The power ministry has suggested that CIL be directed to stop the premium sale of thermal coal through e-auction route and divert the supply to power plants facing fuel crisis despite coal linkage. The producer could be allowed to make an across-the-board hike in its notified coal prices so that it is able to make up for the lost revenue.
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