Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA
Ministry of Coal

RAJYASABHA
UNSTARRED QUESTION NO. 779
ANSWERED ON DECEMBER 01, 2014

 QUESTION
Coal Linkage to Private Power Plants

 

779. SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of COAL be pleased to state: 

(a)   whether it is a fact that Government is granting linkages to private power plants; 

(b)   what is the capacity of these power plants; 

(c)    whether the reduced amount paid for the coal would result in the final consumerpaying less for power supply; 

(d)   if so, the details thereof; and 

(e)   by how much the power tariff would reduce for the final consumer due to thesubsidized coal received by the private power plants? 

 

ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE)
IN THE MINISTRY OF COAL, POWER AND NEW &RENEWABLE ENERGY
(SHRI PIYUSH GOYAL)

 

(a): As per New Coal Distribution Policy (NCDP), 2007, Standing Linkage Committee(Long-Term) is authorized to recommend the Letters of Assurance (LOAs) for supply ofcoal. Based on the SLC (LT)'s recommendation, so far 177 LOAs have been issued tovarious power plants including Central/State Government Sector as well as IndependentPower Producers (IPPs). 

(b): The total capacity of LOAs issued to IPPs (including Joint Ventures) is about 70938Megawatt. 

(c) & (d): Coal is being supplied to Power Sector as an essential input for powergeneration. It is being supplied to power plants having coal linkage as per Fuel SupplyAgreement at Coal India Limited (CIL) notified price and having long term PowerPurchase Agreement (PPA) with power distribution companies and designatedagencies. Therefore, benefits of notified price of coal are passed on to consumers. 

(e): There is no provision of supply of coal at subsidized price to private power plants.