The coal crisis will cost India dear on the power capacity addition front. The coal ministry today made it clear that it would not be able to provide coal to thermal power projects that are expected to be set up in the next five years.
With the power deficit remaining high, the news that proposed plants will not get coal will put a big questions mark on private and public sector investment in capacity addition.
Coal Minister Sriprakash Jaiswal said that some projects require coal linkages and hence, the ministry would not be in a position to provide coal linkages to power projects. He further added, "If the power projects wish to run plants using imported coal, we can consider that."
In the wake of power supply disruptions in different parts of the country, however, the Coal Ministry had said a few days back that it would make efforts to provide more coal to the country's largest power producer, NTPC through e-auction.
Coal shortages due to factors like the Telangana agitation and Orissa floods have hurt power generation at many NTPC plants, which are operating at sub-optimal levels. E-auction is a process under which coal is sold at market prices through an online bidding process. Also watch the accompanying video for Coal Minister Sriprakash Jaiswal's comments...
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