Lok Sabha Question No. 4893 (UNSTARRED), answered on 2021-03-25
Subject: Continuous Coal Supply to Power Plants
Ministry: POWER
Asked by: Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.4893 TO BE ANSWERED ON 25.03.2021

## CONTINUOUS COAL SUPPLY TO POWER PLANTS

4893. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

Will the Minister of POWER

be pleased to state:

- (a) whether  the  Shakti  Scheme  launched  by  the  Government  to  provide continuous coal supply to the power plants has eased the stress of the power plants;
- (b) if so, the details thereof;
- (c) the details of hurdles being faced by the Government in implementing the continuous coal supply to the plants; and
- (d) the remedial measures being taken by the Government to overcome them?

## A N S W E R

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  NEW  & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

(a) & (b) : The SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently  in  India)  scheme  launched  by  the  Government  to  provide  coal linkages to Power Sector, has eased the stress of the Power plants to a large extent.  Coal  linkages  granted  to  power  plants  under  different  provisions  of SHAKTI policy are given below:

-  Para B(i): Coal linkages for Central Government and State Government generating  companies  have  been  accorded  for  23  projects  of  around 25,340 MW capacity.
-  Para  B(ii):  Coal  linkages  are  granted  on  auction  basis  for  power producers/ Independent Power Producers (IPPs) having already concluded  long  term  Power  Purchase  Agreement  (PPA)  based  on domestic coal. Till date, three rounds of auction for coal linkage under SHAKTI B(ii) have been held under which a total of 39.481 MT of coal (G13 grade equivalent) have been allocated to 17 nos. of power plants having installed capacity of 18219 MW and long term PPA capacity of 10976.4 MW.

........2.

-  Para  B(iii):  The  coal  linkages  are  granted  on  auction  basis  for  power producers/IPPs  without  PPAs  that  are  either  commissioned  or  to  be commissioned.  Coal  drawal  will  be  permitted  only  against  valid  long term  and  Medium  term  PPAs,  which  the  successful  bidder  shall  be required to procure and submit within two (02) years of completion of auction process. Till date, around 7.15 MT  of coal (G13 grade equivalent)  have  been  awarded  by  CIL  to  7  nos.  of  Thermal  Power Projects, having installed capacity of 5995 MW and non-PPA capacity of 3774.94 MW.
-  Para B(iv): Coal linkages are earmarked to the States for fresh PPAs, by pre declaring the availability of coal linkage. States may indicate these linkages to Discoms and based on linkages, may undertake tariff based competitive  bidding  for  long  term  and  medium  term  procurement  of power.  Power  plants  having  non-linkage  and  untied  capacity  may participate in such bidding to get coal linkage. Till date, coal linkages have been allocated  by  Coal  India  Limited  (CIL)  to  States  of  Gujarat, Uttar  Pradesh  and  Madhya  Pradesh  for  3915  MW,  1600  MW  and  3000 MW power respectively.
-  Para  B(viii)  (a):  Further,  coal  linkage  can  also  be  granted  for  three months to one year to power plants which do not have PPAs, to sell power  generated  through  that  linkage  in  Day  Ahead  Market  (DAM) through  power  exchanges  or  in  short  term  through  a  transparent bidding  process  through  Discovery  of  Efficient  Energy  Price  (DEEP) portal. At present, such coal linkage auctions are being carried out on quarterly  basis.  Till  date,  around  3.385  MTs  of  coal  (G-13  grade equivalent)  have  been  allocated  to  various  power  plants  in  auctions held for four quarters viz. Apr-June'20 to Jan-Mar'21.
- (c) & (d) : With  the  concerted  efforts  of  all  the  stakeholders  viz.  Ministry  of Power, Ministry of Coal, Ministry of Railways, CIL, Central Electricity Authority and  power  plants,  the  coal  stock  available  with  thermal  power  plants,  as  on 16.03.2021, is maintained at a level of 30.2 MT which is adequate to run these plants for an average of about 15 days. In order to address the issues of coal supplies to power sector, an Inter-Ministerial Committee comprising of representatives  from  Ministry  of  Power,  Ministry  of  Coal,  Ministry  of  Railways, CEA, CIL / Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions for meeting any contingent situations relating to Power Sector including critical coal stock position in power plants.

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