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The Coal Ministry has conveyed to an Inter-Ministerial panel that it would not be possible to provide fossil fuel to the power plants having an aggregate capacity of 16,000 MW due to coal shortages.
"The Coal Ministry is of a view that due to coal shortages it would not to provide linkages to those power plants--having aggregate capacity of 16,000 MW--which are at the advanced stages of commissioning," a source close to the development said.
Following a direction from the Cabinet Committee on Economic Affairs (CCEA), the Coal Ministry had set up an inter-ministerial panel to look into coal linkages of 16,000 MW power plants.
The IMC, chaired by Coal Secretary S K Srivastava, has members from ministries including Power, Steel, Railways and Law.
A total of 143 fuel supply pacts are to be signed by Coal India (CIL) till 2014-15 in respect of identified power projects of 60,000 MW capacity, which have been assured for coal supply during 12th Five Year Plan period (2012-17), according to an official document.
Of these, 92 FSAs were to be signed by March-end. So far, 56 power companies have entered into fuel supply agreement (FSA) with CIL, which accounts for over 80% of the domestic coal production.
The 16,000 MW capacity power plants are in addition to the 60,000 MW identified power projects.
CIL board has approved the modified FSA with 65% domestic coal and 15% imported coal.
