Coal India Ltd today went on to say that its board cleared the decks for signing of fuel supply agreements subsequent to the auction of coal linkages to Independent Power Producers having long-term Power Purchase Agreement have been concluded.
Under the ‘Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India’ (Shakti), as much as 27.18 million tonnes of annual coal linkages have been booked by 10 successful bidders. These fuel supply agreements are expected to result in an annual generation of over 47 billion units per annum from the linkage coal and an estimated savings in tariff of approx Rs 125 crore per annum for period upto 25 years, a statement said.
The Central government introduced the ‘Shakti’ policy, replacing the earlier discretion based system of granting coal linkages. Under the new policy guidelines for allocation of coal linkages to various segments of power sector issued by the Coal Ministry, Coal India or Singareni Collieries Company Ltd are to grant coal linkages on notified price on auction basis for power producers having already concluded domestic coal based power purchase agreements.