In this Image Shows CCEAHighlights
- The CCEA today approved a policy for providing linkages to power plants.
- The government՚s initiatives as well as international market conditions have helped bring down price of the dry fuel and boosted domestic production.
- Mechanism is required for providing coal linkages to power plants at competitive rates.
- The CCEA has approved the signing of Fuel Supply Agreement with the Letter of Assurance holders.
- PPA is a contract between two parties:
- One which generates electricity
- One which is looking to purchase it
- Coal linkages will be granted on auction basis for Independent Power producers with PPA based on domestic coal.
- Linkages, for full normative quantity, shall be granted for setting up Ultra Mega Power Projects.
- The coal supply to the TPPs has been made as per the provisions of the New Coal Distribution Policy.
- Coal India (CIL) issued LoA for approximately 1,08, 000 MW capacity and no new LoAs were issued thereafter due to the prevailing scarcity scenario
About of Coal Linkage Policy
- Coal linkage policy is a policy designated by the union government for the allocation of coal among thermal power plants.
- The new coal linkage policy for power plants will help producers ensure fuel supplies in an organised manner.
- Inadequate availability of domestic coal coupled with high price for imported coal requires.
- The government to allocate the available coal rationally among the power plants.
- The pricing of coal is an another important issue.
- This is especially necessary as the coal-producing firms are public sector companies.
✍Examrace Team at May 21, 2017