Lok Sabha Question No. 2583 (UNSTARRED), answered on 2021-08-04
Subject: Coal Auction
Ministry: COAL
Asked by: K. Shanmuga Sundaram, P. Velusamy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.2583 TO BE ANSWERED ON 04.08.2021

## Coal Auction

## 2583.  SHRI SHANMUGA SUNDARAM K.: SHRI VELUSAMY P.:

## Will the Minister of Coal be pleased to state:

- (a) whether the Government is having any proposal for auction based coal linkage for companies with long term Power Purchase Agreements (PPAs) for obtaining coal supply from Coal India Ltd (CIL);
- (b) if so, the details thereof;
- (c) if not, the reasons therefor;
- (d)  whether  CIL  in  the  year  2013  had  signed  FSAs  with  certain  firms  producing stipulated MW of capacity;
- (e) if so, the total mega watt generated by these firms against the target fixed; and
- (f)  whether  the  benefit  of  concession  in  coal  supply  will  be  passed  on  to  the consumer by reduction in unit cost and if so, the details thereof?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

- (a) to (c): SHAKTI Policy was introduced  on 22.05.2017 for providing coal linkages to  various  categories  of  power  plants.  Para  B  (ii)  of  SHAKTI  Policy  provides  for granting long term coal linkages through auction route to the power plants having long term Power Purchase Agreements (PPAs). Under Para B (ii) of SHAKTI policy, 3 rounds of linkage auctions have been conducted so far whereby about 33 Million Tonnes (MT) coal linkage has been successfully booked by the participating power plants  for  obtaining  coal  supply  from  Coal  India  Limited  (CIL).  The  round-wise performance is as given below:
- (d): Ministry of coal on 17.7.2013 through Presidential Directive advised CIL to sign Fuel  Supply  Agreement  &  supply  of  coal  to  the  Thermal  Power  Plants (TPPs) commissioned or likely to be commissioned by 31.3.2015.

| Round   | Conducted by   | Conducted during   |   Successful bidders |   Qty. Booked (Mt) | Discount on Tariff (in paise/unit)   |
|---------|----------------|--------------------|----------------------|--------------------|--------------------------------------|
| Round 1 | CIL            | Sept' 2017         |                   10 |              27.18 | 1-4 paise                            |
| Round 2 | CIL            | May'2019           |                    8 |               2.97 | 4-7 paise                            |
| Round 3 | PFCCL          | May'2020           |                    5 |               2.8  | 7-10 paise                           |

(e): Information is being collected. (f): Para B(ii) of SHAKTI policy provides that CIL/SCCL may grant coal linkages on notified price on auction basis for power producers/lPPs having already concluded long term PPAs (both under section 62 and section 63 of The Electricity Act, 2003) based on domestic coal. Power producers/IPPs, participating in auction will bid for discount on the tariff (in paise/unit). The discount by generating companies would be adjusted from the gross amount of bill at the time of billing. Accordingly, coal supply is made by CIL to the FSA holders, who have obtained linkages under B(ii) linkage auctions.

****