Adani Power had to resort to imported coal because of the non-supply of domestic coal. The company had sought compensation for the time period between 2010 and 2018
The company received a long term coal linkage of 0.5 million tonnes per annum for the next five years, it told the exchanges on Monday. Stock has risen over 20 percent in the past one month.
The flagship firm of the Aditya Birla Group will also participate in future coal linkage auctions to secure supply of the dry fuel for its plants, it said in a regulatory filing.
Coal linkage for Coal India arm Mahanadi Coalfields Ltd's (MCL) 1,600 MW super critical thermal power project in Sundargarh district of Odisha has been delayed.
Sources say that Cabinet Secretary met the Coal Ministry officials last week to finalise the linkage guidelines.
A coal linkage is an assured commitment of supply by government monopoly Coal India to various end users as such power, steel and cement plants, and it is one of the two ways (other being e-auction) that Coal India sells the mineral.
The proposal includes swapping agreements for power projects of companies including Adani Power, Indiabulls Power and NTPC, among others.
The development comes at a time when the demand-supply gap of coal is widening in the country.
The coal linkage issue, which was a reason for shrinking of the market will be sorted out within two years, BHEL Chairman and Managing Director B Prasada Rao said.
New bidding norms for thermal power projects are likely to be finalised by December 31, Power Secretary P Uma Shankar said today.
Industry body Assocham has urged the newly appointed Minister of State for Power Jyotiraditya Scindia to resolve the fuel issues that are affecting power generation in the country.
Speaking to CNBC-TV18 in an exclusive interview, RK Goyal, managing director, Kalyani Steel says that it is imperative that more mines are given permission to go ahead with mining activities. "Otherwise, it will be a very big setback for us as well as whole of steel industry," he says.