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Coal ministry cancels fuel linkages to Daewoo and other projects
In an attempt to discipline power producers, the coal ministry has cancelled fuel linkages to three power projects including the Daewoo-promoted 1070 MW Korba (east) power project in Chattisgarh.
In an attempt to discipline power producers, the coal ministry has cancelled fuel linkages to three power projects including the Daewoo-promoted 1070 MW Korba (east) power project in Chattisgarh.
The other projects whose linkages have been cancelled are 700 MW Yamuna Nagar Thermal Power Station being promoted by Haryana Vidyut Prasaran Nigam and 800 MW Jawaharpur project promoted by Jawaharpur Power Ltd. We have cancelled these linkages as Coal India Ltd cannot afford to make financial commitments towards these projects involving thousands of crores at a time when the promoters are not in a position to ensure offtake of coal, official sources said.
The cancellation means that these power projects would have to scout for alternative sources of fuel. Coal ministry has been trying to take steps towards converting these fuel linkages into legally binding fuel supply agreements.
The other projects whose linkages have been cancelled are 700 MW Yamuna Nagar Thermal Power Station being promoted by Haryana Vidyut Prasaran Nigam and 800 MW Jawaharpur project promoted by Jawaharpur Power Ltd. We have cancelled these linkages as Coal India Ltd cannot afford to make financial commitments towards these projects involving thousands of crores at a time when the promoters are not in a position to ensure offtake of coal, official sources said.
The cancellation means that these power projects would have to scout for alternative sources of fuel. Coal ministry has been trying to take steps towards converting these fuel linkages into legally binding fuel supply agreements.
Bureau Report