CEA bats for early LoA for coal linkages
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29/04/2008
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Financial Express (New Delhi)
The Central Electricity Authority (CEA) has appealed to the power ministry to grant letter of awards (LoAs) for coal linkages to large size thermal projects due to be commissioned during the first two years of the 12th plan. CEA has argued that an early issuance of LoA would ensure timely coal linkages and thereby commissioning of projects as per the time schedule. CEA has also called upon the power ministry to expedite the issuance of LoA for development of coal mines for thermal power projects. The total generation capacity of projects, which should get early LoA for coal linkage and development of coal mines, are of 13780 mw. These projects due to be commissioned during the first two years of the 12th Plan. Informed sources told FE that the CEA is also processing a list of applications for grant of Letters of Award (LoA) for linkages to Independent Power Projects (IPP) with total generation capacity of 24,437 mw due for commissioning during the 11th plan or the first two years of the 12th plan. Further, CEA has informed the power ministry that it has received a number of applications for linkages for large size thermal power projects of which many projects are currently in the process of acquiring land and obtaining necessary statutory clearances. Despite the fact that the gestation period of a large size thermal project from planning stage to commissioning is usually over four years, the CEA has urged the power ministry to grant the LoAs for coal linkages to the various developers for projects which are expected to be commissioned during the first two years of the 12th plan keeping in mind that an early start to the process will ensure even distribution of placement.