Cabinet allows more coal supply to power firms facing green woes

New Delhi: The government today approved more coal supply to nine power projects, including those of GMR, Sterlite which have failed to develop mines allocated to them due to environment hurdles.

"The CCEA (the Cabinet Committee on Economic Affairs) has approved the supply of coal to nine of such 24 units in which development of coal block was delayed due to the 'Go' 'No-Go' Policy of the Ministry of Environment & Forests on FSA (Fuel Supply Agreement) basis subject to review/ readjustment wherever necessary," an official statement said.[caption id="attachment_1308455" align="alignleft" width="380"] More coal supply. Getty Images[/caption]

According to official sources, the cabinet approved two power projects of Sterlite, two of GMR and two of KSK Mahanadi Power, among others.

Power plants, whose mines are not developed in the absence of environmental clearances, get coal supply for three years as per the Tapering Coal Linkage Policy.

While the quantity of fuel admissible under Tapering Linkage Policy will be supplied through FSA, the additional quantities will be supplied on Memorandum of Understanding basis, subject to availability of coal, the statement added.

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The position would be reviewed at the end of the first, second and third year by the coal ministry along with the power ministry and Planning Commission.

The CCEA had earlier approved coal supplies to Thermal Power Plants (TPPs) with a capacity of 78,000 MW. There are 24 TPPs with tapering linkages within 78,000 MW capacity.

Only the quantities admissible under the tapering linkage policy were approved for such plants.

Subsequently, requests were received from developers and recommendations by the power ministry that some of the TPPs with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore fuel supplies for such plants should continue.

PTI