New Power Projects Can Meet Coal Requirement Through Imports.

New Delhi: Amid severe coal shortages, the government on Tuesday said developers of new power projects can depend on imported raw material to meet their fuel requirement.
     
The development comes at a time when acute coal shortages are disrupting power supplies in different parts of the country.
     
Emerging out of a inter-ministerial panel meeting to review status of infrastructure projects, Coal Minister Sriprakash Jaiswal said, "we don't have availability of coal for new projects".
     
"If they (developers) can run power plants on imported coal, then banks can consider (funding) for new power projects," Jaiswal said.
     
Without divulging details, the Minister said three upcoming power projects have been denied coal linkages.
     
Coal Ministry sources said that these projects pertained to Lanco Infratech, GMR and Jindal group. However, it was not immediately clear which Jindal group's projects have been affected.
     
When contacted, a Power Ministry official said a review of 10-12 power projects was taken up by a panel – comprising representatives from Coal, Power, Environment and Finance Ministries.
     
"These are the projects where the banks have sanctioned loans but the companies have not availed loans as the coal linkages are yet to be obtained for these projects," the official said.
     
Power projects having a total capacity of 80,000 MW are under construction. However, coal linkages for upcoming plants -- having a combined capacity of 40,000 MW -- are yet to be obtained.
     
The demand-supply gap in coal is projected at 142 MT this fiscal with domestic output likely at 554 MT. The Planning Commission has warned that the deficit is likely to reach 200 MT by 2016-17.
     
In the first seven months of current year, decisions on more than 100 proposals for coal linkages from sectors, including power, were still pending with the Coal Ministry, as according to official data.
     
Of the 117 applications received in 2011 January-July period, the maximum requests were for captive power plants, followed by state electricity boards and independent power producers, sponge iron and cement plants.  

Source : zeenews.india.com