No Coal for Needy Power Units _ the Financial Express

8/17/2019 No Coal for Needy Power Units _ the Financial Express

1/11

4/14/2016 No coal for needy power units | The Financial Express

http://www.financialexpr ess.com/article/economy/no-coal- for -needy- power -units/232307/ 1/11

Home / Economy

No coal for needy power unitsBy: Sumit Jha | New Delhi | April 4, 2016 1:46 AM

Even as Coal India’s production peaked in FY16 at 535 million tonne and stocks have

piled up at pitheads, power stations with aggregate capacity of 8,000 mega watts (MW)

are facing the grim prospect of shutting down as their short-term fuel supply contracts

with the PSU have just expired. Besides, another set of units with aggregate capacity of

22,000-MW capacity have yet to turn the letters of awards (LoAs) from CIL into long-

Among the power plants that could fail to honour their power purchase agreements (PPAs) with customers

in the absence of clarity over fuel supplies from CIL are Adani Power’s thermal stations in Tiroda and

Kawai, Bajaj Energy’s Lalitpur plant and KSK’s unit in Chhattisgarh. (Source: PTI)

0 2 0G+

http://www.financialexpress.com/author/sumit-jha/http://www.financialexpress.com/article/economy/no-coal-for-needy-power-units/232307/99/print/http://www.financialexpress.com/section/economy/http://www.financialexpress.com/


2/11



term Fuel Supply Agreements (FSAs).

Among the power plants that could fail to honour their power purchase agreements

(PPAs) with customers in the absence of clarity over fuel supplies from CIL are Adani

Power’s thermal stations in Tiroda and Kawai, Bajaj Energy’s Lalitpur plant and KSK’s

unit in Chhattisgarh.

The current scenario is in contrast to the one in 2013 when CIL was finding it difficult to

sign FSAs, despite constant prodding by the government. It had struggled to accept the

FSA obligations even in case of power plants with long-term PPA and slated to be

commissioned before March, 2015. The government at that time identified two groups of

plants with an aggregate capacity of 14,600 MW and asked CIL to supply fuel to them on

a short-term MoU basis as they lacked LoAs from the company.

Go to Top


3/11



Of these units, those with combined (commissioned) capacity of 8,000 MW are equippedwith PPAs but their fuel supplies are uncertain as the short-term contracts ended on

March 31.

Power developers who FE spoke to expressed their concerns over the lack of coal

linkages for these plants despite the creditable improvement in CIL’s production.

Although the government has often said that it would now be auctioning linkages too on

the lines of coal blocks, it has so far been able to come out with such a policy only fornon-regulated user industries while the regulated power sector awaits clarity.

Back in 2013, apart from identifying plants for short-term supply contracts, CIL was also


4/11



issued a presidential directive to sign FSAs with certain power plants holding valid

LoAs. For this purpose, a list of power plants totaling around 78,000 MW capacity was

finalized by the Central Electricity Authority (CEA) and approved by cabinet committee

on economic affairs (CCEA). However, only about 58,000 MW of this capacity has been

commissioned till date with around 54,000 MW having long-term PPAs and are therefore

eligible to draw coal from CIL under FSAs.

“There are also some power plants outside these 78,000 MW units which fulfill the

eligibility criteria for FSAs but are denied coal,” another industry source said. He added

that there was need to have a more concrete and robust mechanism to tackle coal

supply issues with CIL.

In July last year CEA prepared a list of units with aggregate capacity of 22,830 MW that

have LoAs with commissioning date varying between FY17 to FY20. These LoAs have

also not been converted into FSAs, creating uncertainty for units like Reliance Power’s

plant at Butibori in Maharshtra.

Although, most of the central sector plants in this category are likely to be commissioned

before 2020, there are several private sector plants that are facing financial issues

leading to delays in or stoppage of the construction work. For instance, the second phase

of RattanIndia Power projects in Nashik and Amravati have been classified as

‘unpredictable’ by the CEA along with DB Power project in Gorgi.

TAGS: Coal

PROMOTED STORIES

Quirky video on Smriti Irani,Kanhaiya Kumar goes viral(Watch Video)Stream

[ebook] Do you know that youcan buy property with yoursuper? This ebook shows you

ESuperfund

Model Arshi Khan strips forTeam India and Shahid Afridi!Shares A-rated videoShowbiz

0 2 0G+

http://www.financialexpress.com/tag/coal


5/11



Recommended by

WHAT IS YOUR REACTION?

POWERED BY

#

#

#

#

#

#

#

#

#

#

Mukti Bhavan – The hotel wherepeople check-in to die andattain mokshaWhatever

Where the World's BillionairesLiveMansion Global by Dow Jones

Investing Rs.1000 per monthcan lead to Long Term WealthCreation.MyUniverse

10 technologies that make ourpresent obsoleteSymbiosis Institute of Technology

See the Best Luxury Real Estatein the World [Photos]Mansion Global by Dow Jones

Is the World Going Back intoCrisis?TheFinancialist by Credit Suisse

https://www.thefinancialist.com/15250/?utm_source=outbrain&utm_medium=cpc&utm_campaign=the_financialist_main_newer_content&utm_content=57360522&utm_term=5333270http://www.mansionglobal.com/developments?mod=mansiongl_AdGroup33_Outbrain_July24http://www.sitpune.edu.in/campaign2016/blog.php?campaign=outbrain&adgroup=article&adtype=content&keyword=4Aprilhttps://www.myuniverse.co.in/zipsip?utm_source=outbrain_zipsip_desktop&utm_medium=native-ads&adgroupid=Pa-Jou-Con-Zir-Outb-coZI&dmid=investing_rs1000_per_month_can_lead_to_long_term_wealth_creationhttp://www.mansionglobal.com/?mod=mansiongl_homepage_outbrain_Oct1http://www.india.com/whatever/mukti-bhavan-the-hotel-where-people-check-in-to-die-and-attain-moksha-544723/?utm_source=Outbrain&utm_medium=cpc&utm_campaign=muktibhavanhttp://vuukle.com/http://www.outbrain.com/what-is/default/en


6/11



#Discover

Give a rating:

Latest1 comment

I Agree To T&C

MEWhat is your opinion?

Name Email st

Ashish

They came, they invested, they booked profits and they are winding up now, only to return at the

bottom again. They are FIIs. We watched from sidelines happy with our ULIPS and FDs. Visit

prudentcap dot in to explore more .

10 days a go (0) · (0) reply (0)

A2685

Talk of the Town

Earthquake in Guwahati today:

Tremors felt in Kolkata, Delhi NCR

24

Earthquake in Delhi: 6.8 quake rocks

north and east India; Kolkata Metro

shut, buildings develop cracks

4

Odd even scheme significantly

reduced tra짯ic congestion: Arvind

Kejriwal

4

Bitter paradox: Is Maharashtra

sugarcane crop guzzling water in

distress times?

2

Maritime India Summit 2016: What

Narendra Modi government expects

from the initiative

1 Narendra Modi project: AAI calls o짯

talks with Singapore agency on

Ahmedabad, Jaipur airports

1

https://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fmaritime-india-summit-2016-what-narendra-modi-government-expects-from-the-initiative%2f236448%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fnarendra-modi-project-aai-calls-off-talks-with-singapore-agency-on-ahmedabad-jaipur-airports%2f236309%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fodd-even-scheme-significantly-reduced-traffic-congestion-arvind-kejriwal%2f236149%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fodd-even-scheme-significantly-reduced-traffic-congestion-arvind-kejriwal%2f236149%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-guwahati-live-today-tremors-felt-in-kolkata-delhi-ncr-earthquake-in-india%2f236270%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fnarendra-modi-project-aai-calls-off-talks-with-singapore-agency-on-ahmedabad-jaipur-airports%2f236309%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fnarendra-modi-project-aai-calls-off-talks-with-singapore-agency-on-ahmedabad-jaipur-airports%2f236309%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fmaritime-india-summit-2016-what-narendra-modi-government-expects-from-the-initiative%2f236448%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fmaritime-india-summit-2016-what-narendra-modi-government-expects-from-the-initiative%2f236448%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fa-bitter-paradox%2f236382%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2feconomy%2fa-bitter-paradox%2f236382%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fodd-even-scheme-significantly-reduced-traffic-congestion-arvind-kejriwal%2f236149%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fodd-even-scheme-significantly-reduced-traffic-congestion-arvind-kejriwal%2f236149%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-delhi-just-days-after-6-8-quake-north-india-shaken-again%2f236271%2fhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-guwahati-live-today-tremors-felt-in-kolkata-delhi-ncr-earthquake-in-india%2f236270%2f#vuukle_divhttps://vuukle.com/redirect.aspx?host=financialexpress.com&uri=financialexpress.com%2farticle%2findia-news%2fearthquake-in-guwahati-live-today-tremors-felt-in-kolkata-delhi-ncr-earthquake-in-india%2f236270%2fhttp://vuukle.com/pub/#/financialexpress.com/http://vuukle.com/


7/11



IN THE NEWS

Yamaha Saluto RX 110cc launched at a price of Rs 46,400

Prince William and Kate Middleton in India: Royal couple take jeep safari in Kaziranga

Donald Trump takes steps to reset his campaign, tries to soften his image

Odd-even rule in Delhi: All you want to know about this AAP govt scheme

Amazon Kindle Oasis launched in India, priced at Rs 23,999: 5 features to know

Mobile internet services suspended in Kashmir

Google Calendar’s 'Goals' launched: Top key features to know

Punit Soni quits Flipkart, say reports; here is all you want to know about former Google honcho

http://www.financialexpress.com/photos/business-gallery/236409/flipkarts-punit-soni-ex-google-honcho-quits-all-you-want-to-know-about-him-in-10-slides/http://www.financialexpress.com/photos/technology-gallery/236422/google-calendars-goals-launched-helps-you-find-time-for-self-improvement-top-key-features-to-know/http://www.financialexpress.com/article/india-news/mobile-internet-services-suspended-in-kashmir/236453/http://www.financialexpress.com/photos/technology-gallery/236472/amazon-kindle-oasis-launched-in-india-priced-at-rs-23999-top-5-features-to-know/http://www.financialexpress.com/article/india-news/odd-even-rule-in-delhi-all-you-want-to-know-about-this-aap-govt-scheme/236507/http://www.financialexpress.com/article/world-news/donald-trump-takes-steps-to-reset-his-campaign-tries-to-soften-his-image/236570/http://www.financialexpress.com/photos/business-gallery/236589/prince-william-and-kate-middleton-in-india-royal-couple-take-jeep-safari-in-kaziranga-feed-rhino-calves-and-elephants/http://www.financialexpress.com/auto/bike-news/yamaha-saluto-rx-110cc-launched-at-a-price-of-rs-46400/236574/


8/11



Odd-even rule in Delhi: Ozone, other gaseous pollutants on radar during scheme 2.0

No coercive steps against liquor manufacturers in Bihar: Patna High Court

US proposed monitoring of Indian missions in Afghanistan: book

PM to honour babus for excellence in implementing 'Swachh Bharat Mission', 'PMJDY'

GALLERIES

Delhi Metro's 'driverless' trains: 8 facts youdon't want to miss

Odd-even rule in Delhi starts April 15: Top 5travel apps to banish your traffic woes

http://www.financialexpress.com/picture-gallery-section/business-gallery/http://www.financialexpress.com/article/india-news/pm-narendra-modi-to-honour-babus-for-excellence-in-implementing-swachh-bharat-mission-pradhan-mantri-jan-dhan-yojana/236313/http://www.financialexpress.com/article/world-news/us-proposed-monitoring-of-indian-missions-in-afghanistan-book/236355/http://www.financialexpress.com/article/economy/no-coercive-steps-against-liquor-manufacturers-in-bihar-patna-high-court/236356/http://www.financialexpress.com/article/india-news/odd-even-rule-in-delhi-ozone-other-gaseous-pollutants-on-radar-during-scheme-2-0/236349/


9/11



No small beer in South Korea as imported brands threaten incumbents

Oil traders lose faith in recent rally, position for lower prices

McDonald's targeting buyout firms as it seeks to sell North Asia stores

About 40,000 unionized Verizon workers walk off the job

Narendra Modi's big National Agricultural Market initiative: How to make it work

Xiaomi Mi 5, Redmi Note 3 flash sale today: All

you want to know

Monsoon forecast 2016: 'Above normal'

monsoon this year, says IMD

http://www.financialexpress.com/article/fe-columnist/smart-cafe-how-to-make-the-national-agriculture-market-work/235742/http://www.financialexpress.com/article/companies/about-40000-unionized-verizon-workers-walk-off-the-job/236569/http://www.financialexpress.com/article/companies/mcdonalds-targeting-buyout-firms-as-it-seeks-to-sell-north-asia-stores/236571/http://www.financialexpress.com/article/markets/commodities/oil-traders-lose-faith-in-recent-rally-position-for-lower-prices/236566/http://www.financialexpress.com/article/industry/companies/no-small-beer-in-south-korea-as-imported-brands-threaten-incumbents/236567/


10/11



Lenovo Ideapad 100s with Windows 10 OS launched at Rs 14,990; 5 things to know

Mobile Banking, The next big leap

Tearjerker: Here's why onion prices unlikely to drop

VIDEOS

Mahindra & Mahindra At Auto Expo 2016 Yamaha MT-09 launched At Auto Expo 2016

Nissan X-trail & GT-R At Auto Expo 2016 BMW 7 series, Merc S600 showcased at Auto

Expo 2016

http://www.financialexpress.com/videos/http://www.financialexpress.com/article/markets/commodities/rabi-onion-arrivals-in-full-swing-price-drop-unlikely/235234/http://www.financialexpress.com/article/economy/mobile-banking-the-next-big-leap-rbi-governor-raghuram-rajan/235274/http://www.financialexpress.com/article/industry/tech/lenovo-ideapad-100s-with-windows-10-os-launched-at-rs-14990-5-things-to-know/235340/


11/11


Vote

View Results Polldaddy.com

Do you agree with Raghuram

Rajan's view of India being at the

cusp of revolution?

Yes

No

Can't say

The Express Group The Indian Express The Financial Express Loksatta Jansatta Exims Ramnath Goenka Awards

Express Towers Business Publication Division Express Pharma Express Healthcare Express Hospitality Express Travelworld

Express Computers

Privacy Policy Advertise with Us Contact Us Feedback

Copyright © 2016 The Indian Express [P] Ltd. All Rights Reserved.
http://www.financialexpress.com/feedback/http://www.financialexpress.com/contact-us/http://expressgroup.indianexpress.com/advertise.htmlhttp://www.financialexpress.com/privacy-policy/http://computer.financialexpress.com/http://travel.financialexpress.com/http://hospitality.financialexpress.com/http://healthcare.financialexpress.com/http://pharma.financialexpress.com/http://expressbusinesspublications.com/http://www.expresstowers.in/http://expressindia.indianexpress.com/ramnath-goenka-foundation/http://www.exims.in/http://www.jansatta.com/http://www.loksatta.com/http://www.financialexpress.com/http://www.indianexpress.com/http://expressindia.indianexpress.com/news/expressgroup/http://pinterest.com/indianexpress/http://www.stumbleupon.com/stumbler/indianexpresshttp://www.youtube.com/IndianExpresshttps://plus.google.com/+financialexpresshttps://twitter.com/FinancialXpresshttps://www.facebook.com/thefinancialexpresshttp://epaper.financialexpress.com/http://www.financialexpress.com/syndication/https://play.google.com/store/apps/details?id=com.financialexpress.androidhttp://itunes.apple.com/in/app/the-financial-express/id491303242?mt=8http://itunes.apple.com/us/app/financial-express-for-iphone/id508738603?mt=8http://indianexpress.com/http://www.financialexpress.com/todays-paper/http://polldaddy.com/signup-free/?ad=poll-front

Documents

No Coal for Needy Power Units _ the Financial Express