Powe producers allowed to source fuel from cosl india via e-auction
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As pithead stocks pile up, coal major to sell 10 mt of fuel through this dedicated window
With pithead stock piling up at Coal India’s mines due to lack of demand from contracted power sector buyers, the Centre has further relaxed norms for the power sector to source the domestic fuel.
By a notification issued on August 21, the Coal Ministry allowed CIL to open a dedicated window for e-auction of fuel to the power sector. A total of 10 million tonnes of coal, capable of generating nearly 2,000 MW, will be sold through the window this fiscal.
Any generation utility — including those having a fuel supply pact (FSA) with the coal major and the awardees of the recent auction of coal blocks — can buy the fuel through e-auction backed by sales contracts of varying tenure to either discoms or traders or power exchanges.
Coal India currently offers to supply up to 75 per cent of the fuel required (annual contracted quantity) by a utility to run the power station at 80 per cent plant-load factor (PLF) for a 15-year period. This is for utilities commissioned after March 2009. The FSA is given effect only against long-term power purchase agreement (PPA) entered by the generation company. And, since discoms are not showing much interest in entering long-term PPAs, many such plants are denied access to domestic coal.
With pithead stock piling up at Coal India’s mines due to lack of demand from contracted power sector buyers, the Centre has further relaxed norms for the power sector to source the domestic fuel.
By a notification issued on August 21, the Coal Ministry allowed CIL to open a dedicated window for e-auction of fuel to the power sector. A total of 10 million tonnes of coal, capable of generating nearly 2,000 MW, will be sold through the window this fiscal.
Any generation utility — including those having a fuel supply pact (FSA) with the coal major and the awardees of the recent auction of coal blocks — can buy the fuel through e-auction backed by sales contracts of varying tenure to either discoms or traders or power exchanges.
Coal India currently offers to supply up to 75 per cent of the fuel required (annual contracted quantity) by a utility to run the power station at 80 per cent plant-load factor (PLF) for a 15-year period. This is for utilities commissioned after March 2009. The FSA is given effect only against long-term power purchase agreement (PPA) entered by the generation company. And, since discoms are not showing much interest in entering long-term PPAs, many such plants are denied access to domestic coal.
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