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Wednesday, 15 July 09
INDIAN COAL MINISTRY TO CONSIDER POWER PLANT ALTERATION PROPOSALS


PTI reported that the coal ministry has agreed to consider applications of power plants seeking long term coal linkage due to enhancement in electricity generating capacity.

The coal ministry in the guidelines said “The extension or enhancement in the plant due to change in the unit size would be permissible with an additional payment of five per cent of the original fee.”

It said the ministry of coal is receiving applications for seeking long term coal linkage from consumers of power, cement and sponge iron sectors, which are considered by the standing linkage committee, adding that some of such applicants request for change in capacity of the plant with reference to their original application.

The guidelines have been divided into 3 categories applications made before the recommendation of Letter of Assurance by the SLC, within 3 months of the date of placement of minutes of the SLC recommending of Letter of Assurance and within a month of issuance of Letter of Assurance but before signing of the Fuel Supply Agreement.

The guidelines said under these 3 categories, the applications or requests would be considered separately. Reduction in total plant capacity or unit size is allowed but the processing fee would not be refunded.

The riders include additional commitment guarantee to be paid with no surplus coal. Also, the reduction in total capacity or unit size is permissible if it is due to change in unit size and is allowed up to 20% of the original approved capacity.

If a company demands alterations in the project size within 6 months of the issuance of LoA or before signing of the fuel supply agreement, whichever is earlier, then the enhancement in the total project or extension due to change in unit size is not permissible. But the reduction in the plant capacity is possible subject to certain bank guarantee conditions.

In cases where the total approved capacity remains same but unit size undergo change, the same may be permitted by the competent authority in the coal ministry till the time LoA is issued subject to application being made in this regard by the applicant citing reason for change in unit size.
Source: Steel Guru



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