Power India found that the Empowered Group of Ministers (EGoM) in its meeting on April 27, has asked the Coal Ministry to formulate a policy for use of surplus or incremental coal available for Ultra Mega Power Projects (UMPPs).
Reliance Power will have to wait for a new coal surplus policy before it can use the surplus coal from its Tilaiya Ultra Mega Power Project. The Coal Ministry has been asked to formulate a policy for use of surplus or incremental coal available for ultra mega power projects (UMPPs).
The process of policy formation as suggested by the EGoM is as below:
- A committee of Secretaries will be asked to give its recommendation
- This will be followed by inter-ministerial discussions
- The Cabinet Committee of Economic Affairs (CCEA) will take a call after that.
- The new policy will be implemented prospectively
It is quite clear from the above process that the new policy process will not affect the permissions already give to Sasan & Chitrangi UMPPs of Reliance Power.
However, it will be applicable for the coal blocks allocated to the Tilaiya UMPP and hence, RPower will have to wait till the said Policy formation to use the coal of Tilaiya UMPP.
Some more Juice Picking
The EGoM had, in its meeting on August 14, 2008, decided to recommend to the Coal Ministry to allow use of incremental coal for other projects.Tata Power has taken issue against this approval. The matter is pending in the Supreme Court.
The Government is looking to set up 16 UMPPs in the country. Each of the projects is given fuel linkages, which means captive supply of coal. Of 16, three (Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand) has been awarded to Reliance Power and one (Mundra in Gujarat) to Tata Power.
More Literature on this topic:
- http://www.thehindubusinessline.com/companies/article3398159.ece
- http://www.metisbs.com/details/news/16678/use-of-surplus-coal-reliance-power-needs-to-wait-for-new-policy.html
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