The government is considering allowing power and steel companies to swap their coal linkages among group entities, subsidiaries and special purpose vehicles, in a bid to optimise fuel availability and cut down the restrictive transportation charges.

At present, coal linkages given to companies (mainly in power, steel and cement sectors) are exclusive to a particular project. These linkages are non-transferable even between group companies. “We are examining a proposal on swap/transfer of allocated domestic coal linkages to reduce transportation cost and put domestic coal to best possible use,” said a coal ministry official.

Coal India has introduced a one-time offer that allows power utilities to lift the fuel directly from mines.

The scheme is available for independent power producers drawing coal under fuel supply agreements (FSAs) as well. “A one-time offer is being made to all power utilities drawing coal under the FSA during 2012-13 to lift the coal, which is held in the stocks on ‘as is where is' basis with the stipulation that the power stations will make their own evacuation arrangement,” CIL has said in a notice. This is the first time Coal India has initiated such a move.

New Delhi Unhappy with the minimum penalty norms in Coal India’s fuel supply agreements (FSA), the power ministry has approached the coal ministry to change the disputed clauses.

‘‘We are trying ... we are taking up this issue with Coal India and ministry of coal. Disincentives are not there for three years and after three years penalty is only 0.01% ... we would want it to be changed,’’ power secretary P Uma Shankar told reporters here.

Coal India is preparing to ink pacts with about 40 power firms

Power firms entering into a pact with state-owned CIL for a minimum assured quantity of coal will face suspension of supply if found diverting the dry fuel for any purpose other than for the specified end-use plant.

Coal ministry feels selloff proceeds will go to the cash-rich coal giant and not in govt coffers.

NTPC Ltd's first ultra-mega power project (UMPP) of 4,000 MW, coming up at Kudgi in Bijapur district of Karnataka, is all set to award contracts for the first phase of 3 by 800 MW once it secures n

Many productive mines have come to a standstill

IN WHAT could make Maruti Clean Coal & Power

Nagpur: The power generation of Maharashtra State Electricity Generation Company (Mahagenco) is likely to suffer this week as coal supply to its Koradi and Khaperkheda plants would be interrupted due to the mega rail block between Bhilai and Bilaspur, official sources said.