CIL arm plans to allocate accumulated coal to power consumers

With logistics constraints leading to coal stock getting accumulated at some sites, Coal India arm Bharat Coking Coal Ltd plans to allocate the piled up dry fuel to power consumers having long-term purchase agreements with distribution companies.
The development comes at a time when the country is grappling with coal shortages and as many as 42 thermal power plants are facing significant fuel deficit.
"Attention... All Power Generators in State, Central Sectors as well as IPPs ( independent power producer) having effective FSA (Fuel Supply Agreement) with the company is drawn to the fact that due to logistics/evacuation constraints coal stock is getting accumulated at some points of the company," BCCL said in a notice.

"It is proposed to allocate the quantity...To the interested power consumers having long term PPA (Power Purchase Agreements) with DISCOMS," it said.
A PPA is a contract between two parties, one who generates electricity and one who is looking to purchase electricity.
BCCL further said that interested power consumers will have to evacuate the coal on their own from the stock till the month-end.
However, the commercial arrangement for such lifting shall be as per FSA or prevailing arrangement, as applicable, it said.
As per latest data from the Central Electricity Authority (CEA), 42 thermal power plants had coal available for less than seven days as on December 25.