Power ministry for 30% coal linkage to Adani's Mundra plant

New Delhi: Ahead of the meeting of inter-ministerial panel on coal linkages this week, the power ministry recommended restoration of 30 percent supply for Adani Power's 100 percent import-based plant at Mundra in Gujarat.

"Ministry of Power has once again recommended restoration of 30 percent coal linkage granted to 100 percent import-based power plant (Adani's Mundra project)," a coal ministry document said.

  Power ministry for 30% coal linkage to Adanis Mundra plant

Coal issues. Getty Images

The government had also received a representation from Adani Power requesting for restoration of an earlier decision of a panel to give coal linkage for the power plant at Mundra, the document said.

"On of the reasons for low PLF (plant load factor) at Mundra plant is due to heavy slagging and boiler temperature excursions being faced due to usages of 100 percent imported coal.

In their opinion, use of Indian coal in blending to the extent of 30 percent would meet various parameters such as heat generation and absorption in the furnace and reduction in super heater and reheater spray within design range. The specific range of their boilers with reference to GCV, ash

contents etc would also thus be met," the document said.

The Standing Linkage Committee in 2010 had granted 30 percent linkage.

However, it was reviewed the next year wherein Coal India informed the panel that six million tonnes of coal for such power stations had not been included in the estimates of Planning Commission. Therefore, CIL may not be able to meet the commitment, according to the document.

The power ministry had also said that earlier decision for grant of coal linkages may be implemented keeping in mind the uncertainty in supply of imported coal.

The matter had again come up for discussions last year and the committee felt that the power ministry needed to clarify the change in situation, with appropriate technical details which justifies any change in decision taken in the meeting held in 2011.

"Ministry of Power has informed that Adani Power has since got conducted a depth study on this issue with due support and inputs form some technical experts. A letter of Adani along with the technical reports has been forwarded," the document said.

The Standing Linkage Committee (Long-Term) for power, set up to review the status of existing coal linkages and Letter of Assurances for power sector, is also likely to take up issues like transfer of linkage of Indraprastha Thermal Power station to Indira Gandhi Super Thermal Power station at Jhajjar in Haryana, among others.

The Standing Linkage Committee (Long-Term) for power set up to review the status of existing coal linkages and Letter of Assurances for power sector is also likely to take up the issues like transfer of coal linkage of Indraprastha Thermal Power station to Indira Gandhi Super Thermal Power station at Jhajjar in Haryana among others in the meeting likely on Monday.

PTI

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Updated Date: Dec 20, 2014 15:42:58 IST