Lok Sabha Question No. 1109 (UNSTARRED), answered on 2024-02-08
Subject: Coal-fired Power Stations
Ministry: POWER
Asked by: Abhishek Banerjee

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1109

ANSWERED ON 08.02.2024

## COAL-FIRED POWER STATIONS

1109. SHRI ABHISHEK BANERJEE:

Will the Minister of POWER be pleased to state:

- (a) the  details  on  the  import  of  coal  during  the  last  five  years,  including quantities, sources and trends;
- (b) the  details  of  the  lending  norms  in  place  for  coal-fired  power  stations, emphasizing financial criteria and environmental compliance;
- (c) the  details  of  the  current  framework  for  Power  Purchase  Agreements (PPAs) in the coal sector, including key terms and conditions; and
- (d) the  strategies  and  plans  framed  for  expanding  coal-based  generation capacity in the near future?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a)  :   The details of coal imported by Domestic Coal Based plants and Imported coal based plants during last five years and the current year is as under:

(All Figures in Million Tonnes)

|                          | Receipt of Imported Coal                            | Receipt of Imported Coal            | Receipt of Imported Coal   | Receipt of Imported Coal   |
|--------------------------|-----------------------------------------------------|-------------------------------------|----------------------------|----------------------------|
| Period                   | Import by Domestic Coal based Plants (for blending) | Import by Imported Coal based Plant | Total Import               | % Growth                   |
| 2018-19                  | 21.4                                                | 40.3                                | 61.7                       | -                          |
| 2019-20                  | 23.8                                                | 45.5                                | 69.2                       | 12.3%                      |
| 2020-21                  | 10.4                                                | 35.1                                | 45.5                       | -34.3%                     |
| 2021-22                  | 8.1                                                 | 18.9                                | 27.0                       | -40.6%                     |
| 2022-23                  | 35.1                                                | 20.5                                | 55.6                       | 106.1%                     |
| 2023-24 (April-December) | 17.1                                                | 29.5                                | 46.6                       | 3.9%*                      |

[During the period: April - December (2022-23), the total import was 44.8 MT [Import by Domestic Coal based Plants (for blending) : 28.8 MT + Import by Imported Coal based Plants  : 16.0 MT] Power plants designed on domestic coal use imported coal for blending purpose whereas power plants designed on imported coal import coal for their fuel requirement. As coal is under open general licence (OGL), power plants import coal as per their preference and source based on their commercial prudence. (b) : Financial Institutions follow specific lending norms for coal-fired power stations to ensure responsible financing. These norms include maintaining a reasonable capital structure  with  a  maximum  Debt:  Equity  ratio  of  80:20  and  acceptable  financial  ratios like  Internal  Rate  of  Return  (IRR)  and  debt  service  coverage  ratio  (DSCR).  Funds  are typically  provided  by  consortium  of  lenders  and  loan  repayment  tenor  is  restricted  to 80% of the project's economic life. Besides  this,  Environmental  compliance  is  a  crucial  aspect,  with  clearances required from relevant authorities such as Ministry of Environment, Forest and Climate Change,  State  Pollution  Control  Board,  and  others.  Projects  undergo  a  thorough analysis,  considering  factors  like  Environmental  Impact  Assessment,  land  acquisition status and potential pollution impact as well as other Statutory clearances related to coal  linkage,  water  allocation  and  aviation  clearance  for  chimney  height  for  availing financial  assistance.  Funds  are  disbursed  only upon  full  compliance  with  these conditions and documentations. (c) : Power Purchase Agreements (PPAs) under Section 63 of the Electricity Act, 2003 are guided by the model PPAs issued by the Ministry of Power for procurement of power. The  model  PPAs  inter  alia  have  provisions  for  Change  in  Law,  Force  Majeure,  Tariff, Performance Security, consequences of default, Payment Security Mechanism, etc. Further,  Ministry  of  Power  (MoP)  has  issued  the  following  framework  for  Power Purchase Agreements (PPAs): 1. FOO (Finance, Own and Operate) 2. DBFOO (Design, Build, Finance, Own and Operate) 3. DBFOT (Design, Build, Finance, Operate and Transfer) (d)  :     To  ensure  an  uninterrupted  power  supply  for  the  nation's  growth,  the  total anticipated  thermal  capacity  addition  by  2031-32  will  be  93380  MW.  Currently,  26380 MW of thermal capacity is under construction, 11960 MW has been bid out and 19050 MW is under clearance. With the addition of this capacity, the installed thermal capacity will be 283000 MW in 2031-32.

************