Coal Min seeks status of PPAs from 20 companies by tomorrow
The government has sought by April 10 the status of the power purchase agreements from 20 companies, including NTPC, NMDC, NHPC and Neyveli Lignite, that have applied for coal mines to be alloted to PSUs.
New Delhi: The government has sought by April 10 the status of the power purchase agreements from 20 companies, including NTPC, NMDC, NHPC and Neyveli Lignite, that have applied for coal mines to be alloted to PSUs.
"The companies who have not submitted the status of their Power Purchase Agreement...In respect of the application submitted in response of NIA (Notice Inviting Application with regard to 17 blocks for allotment to Government companies) are requested to furnish the same...By April, 10," the Coal Ministry said.
A power purchase agreement (PPA) is a contract between two parties -- one who generates electricity for the purpose of sale (the seller) and one who is looking to purchase electricity (the buyer).
The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation among others.
Other companies which have been asked to submit the status of PPA are Andhra Pradesh Power Generation Corp, Bihar State Power Generation, Gujarat Industries Power Company Ltd, Kerala State Electricity Board and Neyveli Uttar Pradesh Power Ltd among others.
Initiating the process of allocation of coal mines, the government had last year invited proposals from PSUs for alloting 17 blocks to them, mostly for captive power plants.
The development came in the wake of the government's repeated announcements to make policy for mines allotment transparent, following CAG terming potential losses of Rs 1.86 lakh crore to the exchequer on account of blocks allotment to 57 private firms without auction.
The blocks on offer have estimated reserves of 8.45 billion tonnes.