Get coal for power plant via auction, panel tells GVK

New Delhi An inter-ministerial panel on coal linkages has asked GVK to obtain fossil fuel through special forward e-auction for its 540-mw thermal power project near Goindwal Sahib in Punjab.

"The Standing Linkage Committee (long-term) clarified that the MoU (memorandum of understanding) for coal supply was valid till June 30, 2016 and this would not be extended," an official said.

The project proponent was advised to obtain coal through special forward e-auction route, the official added.

"The project proponent (PP) had earlier informed... That the plant -- 2x270 mw GVK Power (Govindwal Sahib) -- has been commissioned, but there was no coal available for plant. It was also informed that 100 per cent power was sold to PSPCL (Punjab State Power Corporation Ltd) through a long-term PPA (power purchase agreement)," the official said.

The PP had requested for a coal linkage for the plant as the asset was lying idle for want of coal.

GVK Power had stated that it has achieved plant COD (commercial-operation-date) and PSPCL has accepted the same for Unit 1 with effect from April 6 and for unit 2 from April 16.

The official said unit 1 started commercial operation on April 16, but could not sustain the continuity of operation beyond April 22 due to non-availability of coal as their Tokisud North captive coal mine was cancelled by the government.