NOOR MOHAMMAD
Posted: Monday, Jul 16, 2012
Financial Express
New Delhi: Bajaj Hindusthan’s R12,000-crore Lalitpur thermal power project in Uttar Pradesh seems to be in trouble, with the coal ministry making it clear that it is not in a position to commit coal supply to the project under the power ministry’s 12th Plan capacity addition programme.
The Shishir Bajaj-led Bajaj Group, a sugar-to-hair oil conglomerate, recently forayed into commercial power generation through its subsidiary Bajaj Hindusthan. The subsidiary is banking on timely completion of the Lalitpur power project to have 5,000 MW operational capacity in place by 2015. Its plan could go haywire, though, if the company fails to secure fuel linkage for the project on time.
However, pointing out that it has already committed to providing coal linkage to more than 80,000 MW under-construction capacity, the coal ministry has said that it would not be possible for it to grant coal linkage to any more 12th Plan projects.
“Since letters of assurance (LoAs) amounting to more than 80,000 MW for setting up power projects already exist, there is prima facie no scope for grant of new LoAs for 12th Plan power projects. This is the position MoC (ministry of coal) has been taking in all the cases requiring fresh coal linkages,” the coal ministry has said in reply to a reference from the Prime Minister’s Office (PMO) over this issue.
Coal India subsidiaries have issued letters of assurance covering the capacity of 108,000 MW. During the last three years of the 11th Plan, only 26,000 MW was commissioned. The balance capacity has been included in the 12th Plan programme.
Since LoAs have been assured to these projects, CIL subsidiaries are required to issue coal linkage to them as per the existing policy.
The previous Mayawati-led regime in the state had signed 10 memorandums of understanding (MoUs) with private companies for the development of 10,970 MW capacity. However, nine projects are still languishing for want of coal linkage, which private developers had committed to arrange on their own. The new government in the state has extended the validity of the MoUs by 18 months for all the nine projects, but it is far from certain whether these projects would finally see the light of day.
Himawat Power's Bhognipur-I, Creative Thermolite’s Murka, Torrent Power’s Sandila and Welspun’s Mirzapur are some other private projects in Uttar Pradesh stuck due to non-availability of coal linkages.
Posted: Monday, Jul 16, 2012
Financial Express
New Delhi: Bajaj Hindusthan’s R12,000-crore Lalitpur thermal power project in Uttar Pradesh seems to be in trouble, with the coal ministry making it clear that it is not in a position to commit coal supply to the project under the power ministry’s 12th Plan capacity addition programme.
The Shishir Bajaj-led Bajaj Group, a sugar-to-hair oil conglomerate, recently forayed into commercial power generation through its subsidiary Bajaj Hindusthan. The subsidiary is banking on timely completion of the Lalitpur power project to have 5,000 MW operational capacity in place by 2015. Its plan could go haywire, though, if the company fails to secure fuel linkage for the project on time.
However, pointing out that it has already committed to providing coal linkage to more than 80,000 MW under-construction capacity, the coal ministry has said that it would not be possible for it to grant coal linkage to any more 12th Plan projects.
“Since letters of assurance (LoAs) amounting to more than 80,000 MW for setting up power projects already exist, there is prima facie no scope for grant of new LoAs for 12th Plan power projects. This is the position MoC (ministry of coal) has been taking in all the cases requiring fresh coal linkages,” the coal ministry has said in reply to a reference from the Prime Minister’s Office (PMO) over this issue.
Coal India subsidiaries have issued letters of assurance covering the capacity of 108,000 MW. During the last three years of the 11th Plan, only 26,000 MW was commissioned. The balance capacity has been included in the 12th Plan programme.
Since LoAs have been assured to these projects, CIL subsidiaries are required to issue coal linkage to them as per the existing policy.
The previous Mayawati-led regime in the state had signed 10 memorandums of understanding (MoUs) with private companies for the development of 10,970 MW capacity. However, nine projects are still languishing for want of coal linkage, which private developers had committed to arrange on their own. The new government in the state has extended the validity of the MoUs by 18 months for all the nine projects, but it is far from certain whether these projects would finally see the light of day.
Himawat Power's Bhognipur-I, Creative Thermolite’s Murka, Torrent Power’s Sandila and Welspun’s Mirzapur are some other private projects in Uttar Pradesh stuck due to non-availability of coal linkages.
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