Coal India refuses transfer of linkage to NTPC's working plant - Daily News & Analysis

Coal India has refused transfer of coal linkage to NTPC's joint venture, Indira Gandhi Super Thermal Power (IGSTP), a 1,500 mw plant in Haryana, from a decommissioned power plant. IGSTP faces occasional short and poor quality supply. Indraprastha Thermal Power station (ITPS), a venture of Delhi government, from which the coal linkage transfer was proposed, was allocated 1.11 million tonne coal in 2008-09. However, due to adoption of stringent environmental norms, the plant was decommissioned in 2009. The Delhi government then acquired stake in IGSTP promoted by NTPC and government of Haryana. IGSTP, executed by their joint venture, Aravali Power, commissioned its third and final unit in November. NTPC's stake in the project is 25% and share of power 42.6%. The plant has a power purchase agreement with Haryana Power Generation Co. Coal India, while rejecting Delhi government's request, has argued that there is no precedence of transfer of coal linkage and that since the new plant already has an Letter of Assurance (LoA) for its full requirement, there is no need to extend more assurance of supply. "As the cost of generation of IGSTP is high, the Delhi government has requested for transfer of coal linkage of their de-commissioned ITP to IGSTP. The latter has also been issued LoA in 2007 for 1,500 mw and linked quantity is equal to 100% normative requirement. CIL was consulted in the matter and they informed that fuel supply agreement was not concluded with ITP as it had been decommissioned," the coal ministry has said in a inter-ministerial meeting, while accepting Coal India's stand. "They (CIL) have further commented that there is no policy to permit transfer of coal linkages of one plant to another. No coal has been earmarked for ITP on its decommissioning and the linkage quantity of IGSTP is already 100% of the normative requirement which cannot be exceeded," it said. NTPC officials, however, argued that actual supplies are sometimes half the assured quantity, and there are instances like last year when at the time of commissioning of the third unit the plant had less than a week's supply of fuel. @SumitMoitra via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFFNRUkKph9_NQJRhxQhT6ajIXLtA&url=http://www.dnaindia.com/money/1825900/report-coal-india-refuses-transfer-of-linkage-to-ntpc-s-working-plant

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