India : State-owned Coal India allows power companies to swap fuel supplies

The utilities will have the option of deciding the effective way of utilising the coal, so that efficient plants are run at higher capacity to reduce costs, the official said.

New Delhi: State-run power generating companies will now have the flexibility to swap their coal supplies and divert them to more efficient power plants.

Coal India last week signed agreements for aggregation of contracted quantity of coal with state and central power generating companies for flexible movement of coal that would help reduce the cost of power generation, a senior company official said.

The move will allow all coal linkages given to plants of state and central utilities like NTPC to be combined.

That is, if a utility has many plants all over the country and has different fuel supply agreements (FSA) for each plant, all these linkages will be considered as one FSA.

The utilities will have the option of deciding the effective way of utilising the coal, so that efficient plants are run at higher capacity to reduce costs, the official said.

"Till April 13, supplementary agreement has been signed for 368 million tonnes of coal of the total contracted capacity of 402 million tonnes with state and central power generation firms," the official said, adding that the balance agreements are expected to be signed within a few days.

The Union Cabinet in May last year approved the proposal for allowing flexibility in utilisation of domestic coal amongst state-owned power generating stations.

 

Source : http://energy.economictimes.indiatimes.com/news/coal/coal-india-allows-power-companies-to-swap-supplies/58309307

SMART GRID Bulletin August 2017


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