The Cabinet Committee on Economic Affairs has referred a proposal to auction coal linkages for the power sector to a Group of Ministers. While it was widely expected that the proposal may be approved on Wednesday, the government opted for further consultations.
The Coal Ministry has been working on a mechanism to auction coal linkages to power plants since 2015 and had engaged the help of SBI Capital Markets to develop a model.
The policy may be applicable to existing power plants already operating with linkages and new power plants. According to the proposal, existing power plants, with power purchase agreements but no coal linkage, will be able to win the auctions on basis of a premium over the Coal India notified price which would be passed on to consumers by reducing existing electricity tariffs.
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Coal linkage issue referred to GoM
By IndianMandarins - 2016-07-21 11:07:14
The Cabinet Committee on Economic Affairs has referred a proposal to auction coal linkages for the power sector to a Group of Ministers. While it was widely expected that the proposal may be approved on Wednesday, the government opted for further consultations.
The Coal Ministry has been working on a mechanism to auction coal linkages to power plants since 2015 and had engaged the help of SBI Capital Markets to develop a model.
The policy may be applicable to existing power plants already operating with linkages and new power plants. According to the proposal, existing power plants, with power purchase agreements but no coal linkage, will be able to win the auctions on basis of a premium over the Coal India notified price which would be passed on to consumers by reducing existing electricity tariffs.
