Lok Sabha Question No. 1370 (UNSTARRED), answered on 2017-02-09
Subject: Criteria for Allocation of Coal Linkages
Ministry: COAL
Asked by: RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO.1370 TO BE ANSWERED ON 09.02.2017

## 'Criteria for Allocation of Coal Linkages'

## 1370.  Shri Ramsinh Rathwa

Will the Minister of COAL be pleased to state:

(a) the criteria laid down for allocation of coal linkages to consumers in power, steel and coal sectors;

(b) the details of coal linkages allocated by the Standing Linkage Committee during the last three years and the current year;

(c) whether the Government had granted coal linkages to power projects which was in excess  of  coal  availability  in  the  country,  if  so,  the  details  thereof  and  the  reasons therefor;

(d) whether the public sector banks grant credit against the coal linkages and if so, the details thereof ?

## ANSWER

## MINISTER  OF  STATE  (I/C)  IN  THE  MINISTRY  OF  COAL,  POWER,  NEW  AND RENEWABLE ENERGY AND MINES

## ( SHRI PIYUSH GOYAL )

(a): After the introduction of New Coal Distribution Policy (NCDP) in October, 2007, the earlier  linkage  system  has  been  replaced  with  a  system  of  issuance  of  Letters  of Assurance (LoA) which are converted into Long Term Fuel Supply Agreements (FSA) after achievement of prescribed milestones. The requests received from the applicant companies are forwarded to the Administrative Ministries for their recommendations and on receipt of the same, these are placed before the Standing Linkage Committee (LongTerm) for Power, Sponge Iron & Cement Sectors for authorization of LoA.

The  criteria  for  allocating  coal  linkages  to  power  projects  were  issued  by  the Ministry of Power. The order of priority for allocation of coal linkages was:

(i) Power projects of Central Sector, CPSUs, state sector and projects to be bid out by states on tariff based competitive bidding (Case II)

(ii) Independent Power Producers (IPPs)

(iii) Captive Power Projects (CPPs)

Power  projects  needed  to  have  prequalification  criteria  like  water  allocation, identification of location, availability of land, Terms of Reference issued by Ministry of Environment and Forests, defined financial prequalifications, etc. The prioritisation was based on points allocated as below:

| S.No.   | Parameter                                                                                                    |   Points |
|---------|--------------------------------------------------------------------------------------------------------------|----------|
| 1.      | Projects proposing installation of units with super critical technology                                      |       20 |
| 2.      | Projects at pit-head or in state where no major power projects have been planned in 11 th /12 th Plan shelve |       20 |
| 3.      | Projects using sea water instead of fresh water                                                              |       10 |
| 4.      | Progress of land acquisition                                                                                 |       50 |
|         | Total                                                                                                        |      100 |

Allocations of linkages/LoAs for non-regulated sector viz. Cement, Steel/Sponge Iron,  Aluminium,  and  Others  [excluding  Fertilizer  (urea)  sector]  are  granted  through auction from 2016.

(b): Details  of  coal  linkages  allocated  by  the  Standing  Linkage  Committee  during  the last three years is as per Annexure.

(c): Prior  to  NCDP,  total  coal  allocation  to  power  sector  was  305  MT  to  the  power utilities which have commissioned by 01.04.2009 with a supply trigger level of 90%. In line with the NCDP, Coal India has issued LOAs to various power consumers. However, SLC (LT), in its meeting held on 7 th January, 2013, vide additional Agenda Item No. 4 recommended the following considering the dwindling coal availability with CIL:

'The present scenario of domestic coal availability does not allow grant of any further linkages at this stage. The position may however, be reviewed when the domestic coal availability  improves.  In  the  meanwhile,  CEA  may  send  a  technical  report  on  the desirability of grant of coal linkage in this case from this perspective and implications for similarly placed cases, if any.

In the Presidential Directive that was issued on 17.07.2013, CIL was directed for signing of FSAs with the identified power plants with a coal supply at 65%, 65%, 67% & 75% of ACQ for the remaining four years of the 12th Five Year Plan, i.e. 2013-14, 2014-15, 2015-16 and 2016-17.

(d): Indian  Banks'  Association  had  informed  that  lenders  had  funded  projects  on  the basis of LOA.

|   S. No. | Name of Power Plant, Developer       | Capacity   | SLC (LT) meeting held on   |
|----------|--------------------------------------|------------|----------------------------|
|        1 | North Karanpura TPP, Unit-1-3 (NTPC) | 1980MW     | 09.05.2013                 |
|        2 | Telangana TPP                        | 1600MW     | -----                      |

## Tapering Linkage:

| 3   | Barauni TPS (Extension)   | 2 x250MW   | 27.06.2014   |
|-----|---------------------------|------------|--------------|

## Bridge Linkage:

|   4 | Barethi STPP Stage-I, Madhya Pradesh (NTPC)           | 4 x660MW   | 18.03.2016.   |
|-----|-------------------------------------------------------|------------|---------------|
|   5 | Singareni TPP Stage-I, Telangana (SCCL)               | 2 x600MW   | 18.03.2016    |
|   6 | STPP at Tanda Stage-II, Uttar Pradesh (NTPC)          | 2 x660MW   | 18.03.2016    |
|   7 | Kudgi Stage-I, Karnataka (NTPC)                       | 3 x800MW   | 18.03.2016    |
|   8 | Lara STPP Stage-I, Chhattisgarh (NTPC)                | 2 x800MW   | 18.03.2016    |
|   9 | Darlipali STPP, Odisha (NTPC)                         | 2 x800MW   | 18.03.2016    |
|  10 | Barh STPP Stage-II, Bihar (NTPC)                      | 2 x660MW   | 18.03.2016    |
|  11 | Panki TPP, Dist. Kanpur, Uttar Pradesh (UPRVUNL)      | 1 x660MW   | 18.03.2016    |
|  12 | Jawaharpur TPP, Uttar Pradesh (UPRVUNL)               | 2 x660MW   | 18.03.2016    |
|  13 | Harduaganj Extn. TPP, Uttar Pradesh (UPRVUNL)         | 1 x660MW   | 18.03.2016    |
|  14 | IB TPP, Banharpali, Odisha (OPGCL)                    | 2 x660MW   | 18.03.2016    |
|  15 | Bilhaur STPP, Uttar Pradesh (UPRVUNL)                 | 2 x660MW   | 18.03.2016    |
|  16 | Bellary TPP Unit-3, Karnataka (KPCL)                  | 1 x700MW   | 18.03.2016    |
|  17 | Yermarus TPP Unit - 1 &2, Karnataka (KPCL)            | 2 x800MW   | 18.03.2016    |
|  18 | Marwa TPP Unit-1 &2, Chhattisgarh (CSPGCL)            | 2 x500MW   | 18.03.2016    |
|  19 | Kakatiya TPP, Telangana (TSPGCL)                      | 1 x600MW   | 18.03.2016    |
|  20 | Koradi TPP, Unit-8,9& 10, Maharashtra (MAHAGENCO)     | 3 x660MW   | 18.03.2016    |
|  21 | Chandrapur TPP, Unit- 8 &9, Maharashtra (MAHAGENCO)   | 2 x500MW   | 18.03.2016    |
|  22 | Parli TPP Unit-8, Maharashtra (MAHAGENCO)             | 1 x250MW   | 18.03.2016    |
|  23 | Obra C TPP, Dist. Sonebhadra, Uttar Pradesh (UPRVUNL) | 2 x660MW   | 21.06.2016    |
|  24 | Chhabra STPP Unit-5 &6, Rajasthan (RRVUNL)            | 2 x660MW   | 21.06.2016    |
|  25 | Chhabra TPP Unit-3 &4, Rajasthan (RRVUNL)             | 2 x250MW   | 21.06.2016    |
|  26 | Barauni TPS Extn. project, Bihar (BSPGCL)             | 2 x250MW   | 01.09.2016    |
|  27 | NALCO Unit-9 &10 at CPP Nalconagar, Odisha            | 2 x120MW   | 01.09.2016    |
|  28 | Chandrapura TPS Unit- 8 (DVC)                         | 1 x250MW   | 01.09.2016    |
|  29 | Shri Singaji TPP Phase-II, Madhya Pradesh (MPPGCL)    | 2 x660MW   | 21.06.2016    |
|  30 | Kalisindh TPP Unit-1& 2, Rajasthan (RRVUNL)           | 2 x600MW   | 21.06.2016    |
|  31 | Suratgarh STPP Unit- 7 &8, Rajasthan (RRVUNL)         | 2 x660MW   | 21.06.2016    |
|  32 | Mejia TPS Unit-7 &8(DVC)                              | 2 x500MW   | 01.09.2016    |