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Government orders Coal India to supply 'out-of-turn' to PSUs

By IndianMandarins- 26 May 2018
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government-orders-coal-india-to-supply-out-of-turn-to-psusIn a jolt to private power producers, the government has ordered Coal India Ltd. to make 'out-of-turn' allotment of scarce coal to central and state electricity generation companies. The order follows a Coal Ministry directive that instructed companies like Mahanadi Coalfields Ltd. to deploy rakes of coal only for power plants and not for other users like captive power plants of private industries. The Coal Ministry said there may be an increased demand for coal due to a surge in demand during peak summer. Out-of-turn allocation would have a direct bearing on coal allocation under the ambitious scheme named SHAKTI or the scheme to Harness and Allocate Koyla Transparently in India, as well as that done through e-auction. Sources said coal allocation under these is under threat as Coal India has been failing to meet its production target and would not supply the scarce fuel to PSUs on priority. The move comes at a time when power producers are under tremendous stress and struggling to keep the projects afloat.  

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