An inter-ministerial panel has recommended that the quantum of fuel to those end use plants which were initially allocated coal blocks but were later deallocated may be assured after taking the opinion of Coal India and Central Electricity Authority (CEA).
"After discussions, the Committee recommended that the quantum of such coal supplies to...EUPs (End Use Plants) which were already having coal linkages and which were subsequently converted into tapering linkage on allocation of coal blocks which were later deallocated, may be assured after taking inputs of CEA and CIL," according to an official.
Tapering Linkage is short-term linkage provided to those consumers who have been allocated captive coal blocks but the mines could not be developed on time.
The recommendations were made during the meeting of the panel which was set up to consider fuel supply issues related to end use plants.
During the meeting, state-owned Coal India (CIL) stated that it has already made substantial commitment to the power sector and all its subsidiaries were running negative balance of fuel supplies.
"Further, these EUPs were previously having coal linkages and subsequent to the allocation of coal blocks, the quantities were tapered off and the resultant availability of coal had already been committed elsewhere. Therefore it would be difficult for CIL to revert to the supplies as they existed earlier," the official added.
During the meeting chaired by Additional Secretary Coal A K Dubey, the Steel Ministry reiterated its earlier view that coal supplies to all the running plants should not be discontinued.
DIPP also endorsed the views of steel ministry, the official said.
The panel has member from the ministries including power, steel and finance.
