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    CIL clears coal supply deals with 10 September auction winners

    Synopsis

    The power plants won coal supply contracts after committing to generate power at discounts ranging between 4 paise and 1 paisa per unit over their existing tariffs.

    Coal India
    The companies that will receive the coal supplies to power plants include Adani Power, GMR Energy and KSK Energy that quoted the highest discount in electricity tariffs to receive coal supply.
    NEW DELHI: The board of directors of Coal India on Wednesday cleared the decks for awarding coal contracts to 10 power plants that won the supply in an auction held in September.

    “Auction of coal linkages to independent power producers having long-term power purchase agreements (PPAs) have been concluded successfully by CIL whereby 27.18 million tonnes of annual coal linkages have been booked by 10 successful bidders,” the state-run coal monopoly said an official statement.

    The beneficiaries include Adani Power, GMR Energy and KSK Energy that quoted highest discounts in electricity tariffs to receive coal supply. The fuel supply agreements (FSAs) are expected to result in an annual power generation of more than 47 billion units and an estimated savings in tariff of about Rs 125 crore per annum for 25 years.

    The power plants won coal supply contracts after committing to generate power at discounts ranging between 4 paise and 1 paisa per unit over their existing tariffs.

    Adani Power Maharashtra and Adani Power Rajasthan together secured supplies of 9.9 million tonnes of coal, while KSK Mahanadi Power bagged 6.8 million tonnes, Lalitpur Power Generation Company got 5.6 million tonnes, GMR Kamlanga Energy got 1.5 million tonnes and GVK Power bagged 1.7 million tonnes. ACB India, Inland Power and Sai Lilagar Power Generation are among the others to have won coal supplies.

    The power companies were awaiting CIL board clearance to the results of the auctions held on September 11. The auctions are being seen as critical to address the stressed assets problem. The power ministry has said the auctions would revive seven of the 34 power projects identified in the stressed-assets category by the government.



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