As many as 10 independent power producers have secured 27 million tonnes of annual coal linkages under the auction of fuel supply, the coal ministry said today.
"Auction of coal linkages to Independent Power Producers (IPPs) having long-term Power Purchase Agreement (PPA) have been concluded successfully by CIL (Coal India Ltd) whereby 27.18 million tonnes of annual coal linkages have been booked by 10 successful bidders," the Coal Ministry said in a statement.
These fuel supply pacts are likely to result in an generation of over 47 billion units per annum from the linkage coal, and an estimated savings in tariff of approximately Rs 125 crore per annum for period up to 25 years.
The 'Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India' (SHAKTI) policy replaced the earlier discretion based system of granting coal linkages.
This transformation has helped in achieving accountability in allocation of coal. It has ensured access to coal for several stressed plants thereby also helping the banking sector and overall economy.
Under the new policy guidelines for allocation of coal linkages to various segments of power sector, Coal India and Singareni Collieries are to grant coal linkages on notified price on auction basis for IPPs having already concluded domestic coal based PPAs.
"The bidding parameter will be levelised discount on existing tariff that the IPP is willing to provide. The likely benefit arising out of the weighted average discount on tariff as quoted by the bidders for 2.72 paise/kWh will be around Rs 127 crore per annum," the statement said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)