A ministerial panel has said it would not be possible for it to recommend granting long-term coal linkage to a part of Adani Power's project in Maharashtra and the government should take a decision on it after laying down general principles on the issue involved.
Adani Power Maharashtra Ltd (APML) proposed to set up a coal-based project. It was granted Letter of Assurance (LoA) on long-term basis for meeting the requirement of 1180 MW.
However, for the remaining 800 mw, it was given LoA for tapering or short-term linkage. The company has sought its conversion to long-term linkage.
"It is not possible to give any specific recommendation in the matter by the SLC (Standing Linkage Committee) at this point of time as it will have implications for many other similarly situated power plants," according to the minutes of the meeting of SLC (Long-Term) for power.
"A decision may be taken by Ministry of Coal on such a category of the power plants after laying down general principles in this regard," it added.
SLC is an inter-ministerial panel, chaired by additional secretary, the Ministry of Coal.
The company had requested that as the first unit of the power project in on the verge of commissioning and the pending allocation of alternate coal block, the tapering linkage be converted to long-term linkage.
Tapering linkage is provided to those coal consumers who have been allocated blocks for meeting the fuel requirement of their end-use plants but where the coal production does not meet the fuel needs.
"In respect of the LoA granted on tapering basis for 800 mw capacity, for which they have been allocated coal blocks (Lohara West and Lohara Extension), they (APML) have represented that MoEF has withdrawn the ToR (Terms of Reference) of the blocks due to their close proximity to... Tiger Reserve," the minutes of the meeting said.
The Environment Ministry, however, has recommended to the Coal Ministry to allocate alternate coal block.
"It has been reported by the developer that even if alternate coal block is allocated, it will take minimum four to five years to develop the same for supply of coal to Tiroda power project," the minutes said.
