Moneycontrol
Jan 02, 2013 10:55 AM IST | Source: PTI

Adani Power seeks coal linkages for Maharashtra project

Adani Pwer has requested the Coal Ministry to grant long-term coal linkage for its proposed thermal power plant in Maharashtra.

Adani Power seeks coal linkages for Maharashtra project

Adani Power has requested the Coal Ministry to grant long-term coal linkage for its proposed thermal power plant in Maharashtra.


"Adani Power Maharashtra (a subsidiary of Adani Power) has submitted a request, indicating that they are setting up ...IPP (Independent Power Producer) at Tiroda (Maharashtra)..."


The applicant has, therefore, requested that as the first unit is on the verge of commissioning and pending allocation of alternate coal, the tapering linkage be converted to long-term coal linkage," said a Coal Ministry document.


Tapering Linkage is the short-term linkage provided to those coal consumers who have been allocated captive coal blocks for meeting the fossil fuel requirements of their end use plants but where coal production does not meet the fuel requirement.


The project, the document said, is at advanced stage of development and the first unit is expected to be commissioned shortly. The power plant was allocated Lohara West and Lohara Extension coal block.


The Environment Ministry was of the view that the project was close to a tiger reserve and recommended the Coal Ministry grant alternate coal block against which the company has been recommended tapering linkage.


Out of 1,980 MW for which Letter of Assurances (LoA) exist, the first unit of 660 mw was commissioned in the last fiscal and the second unit of 660 MW was likely to be commissioned during the ongoing fiscal, the document said.


"The third unit of 660 MW does not appear in the approved list. There is no policy for allocation of alternate coal block (for the unit)," it said.


Adani Power Maharashtra had in 2007 requested for coal linkage in respect of their 1980 mw--1,320 MW phase-I and 660 MW phase-II) Thermal Power plant proposed to be set in Maharashtra.


The committee on linkages had in 2008 recommended Letter of Assurances (LoA) for 1,180 (1,980 MW capacity less 800 MW covered by coal block separately allocated).

The committee again in 2010 authorised issuance of LoA against 800 MW covered by the allocated coal block

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