Government snaps off coal supply to 25 captive power plants

The coal ministry on Friday cracked down on ''non-serious'' power projects by cancelling coal linkages of 25 captive power plants (CPPs). These plants, with a combined capacity of 1,292 mw, require 5.844 million tonnes of coal annually, but the ministry has effectively cancelled their assured access to coal.

Coal minister Sriprakash Jaiswal told reporters in New Delhi that despite being given ample time, these captive power projects failed set up power plants in spite of having been accorded coal linkage by the ministry. The latest move aims to free up fuel for active power plants that are running short.

In seven cases, appropriate directions had already been issued for cancelling the fuel supply agreement. In another 19 cases Coal India has been asked to place their names on its website and also send letters asking them to give a detailed project status within 15 days, failing which linkage would be cancelled without any further notice, he added.

Last month, the Ministry held a meeting with private and public sector companies including NTPC, SAIL, and NMDC and reviewed the progress of work on the captive coal blocks allotted to them.

The coal ministry has already served de-allocation notice on 14 coal properties. Most of the 25 plants that lost coal linkage were located in Chhattisgarh, Jharkhand and Maharashtra,. Jaiswal said. 

Among the firms that were issued show-cause notices earlier include Tata Sponge, Monnet Ispat, the Adhunik Group, electricity boards of Tamil Nadu and Jharkhand, power corporations of Maharashtra and Haryana and the mineral development corporations of Chhattisgarh, Assam and Meghalaya.