11th plan target could not be met due to environmental problems

The Planning Commission and Power Ministry are believed to have reached a consensus over fixing the capacity addition target at 90,000 MW for the next five years. Earlier, Power Ministry had proposed a target of adding 76,000 MW in the current 12th Five Year Plan (2012-17), keeping fuel constraints in mind. On the other hand Planning Commission wanted the target to be 1,00,000 MW, as the power demand is very high.

The chief of NTPC, India’s biggest power generator, has launched an unprecedented no-holds-barred attack on fellow state-run firm Coal India Ltd (CIL), calling it the “only company in the world where the production has gone down but the profits have gone up”. Alleging that Coal India’s status as the country’s only coal miner was harming the power sector and the entire nation, NTPC Chairman Arup Roy Choudhury said its inability to supply adequate amount of fuel was threatening his company’s expansion plans.

Major power producers in the private and public sector, including Tata Power, NTPC, Torrent Power and Mahagenco, have opposed the proposal floated by the Association of Power Producers (APP) to pool domestic gas with RLNG (regasified liquefied natural gas). They have opposed the move on the ground that this would lead to higher tariffs.

In its submission to the Central Electricity Authority (CEA) on the gas pooling issue, Tata Power said that its Trombay power station was allocated 1.5 million metric standard cubic metres per day (mmscmd) when ONGC flaring first started.

NTPC Ltd, India’s biggest power producer, said it plans to spend as much as $15 billion (Rs 82, 521 crore) over a decade to secure overseas coal supplies as prices of the fuel tumble to a 19-month-low.

The utility may sign five- or 10-year contracts for the first time to import as much as 150 million metric tonnes of coal, Chairman Arup Roy Choudhury said by telephone from New Delhi on Tuesday.

Power companies have refused to ink fuel supply pacts with the miner due to insertion of new clauses

The Coal Ministry has asked Coal India to examine issues, including changes in penalty clause, raised by the power producers regarding the model fuel supply agreement. The move comes against the backdrop of NTPC and many power companies refusing to ink fuel supply pacts with Coal India Ltd (CIL), disagreeing with introduction of new clauses.

NEW DELHI, May 22 – Assam may be reeling under massive power shortages, but Union Power Minister is still sitting on the proposals to grant long-term coal linkages to Chandrapur and Margherita thermal power plants. Applications seeking long-term coal linkage and Letter of Assurance (LoA) for setting up 60 MW thermal power project at Chandrapur and 500 MW Margherita project were received by the Ministry of Coal and sent to Ministry of Power for recommendations.

New Delhi: Steel major SAIL on Monday got a dressing down from the government over “unsatisfactory” performance and poor progress in expansion and modernization programmes, leading to cost escalations. While SAIL chairman C S Verma termed the Maharatna’s performance as satisfactory, steel minister Beni Prasad Verma came down heavily on the company, warning that “administrative decisions” will be taken if performance is not turned around.

Maharatna major NTPC’s maiden overseas venture at Khulna in Bangladesh has now run into an environment hurdle due to its proximity to the world’s largest mangrove forest Sunderbans.

Environmentalists in Bangladesh have already moved court asking the project to be scrapped as it comes within 14 kilometres of Sunderbans. The 1320MW (2X660MW) project is a 50/50 joint venture between NTPC and Bangladesh Power Development Board and both the parties have signed a memorandum of understanding recently.

More than eight months after the government scrapped the controversial ‘no-go’ policy, which had banned mining in some areas, state-owned Coal India Ltd (CIL) is still struggling to operate its new projects located in the so-called no-go areas in the absence of a formal go-ahead from the environment ministry.

The delay is set to stem the miner’s efforts to meet new supply obligations, further aggravating the ongoing coal crisis in the country. “Since September last year, only two of our new mining projects have received clearance and, that too, outside of the no-go list.

CIL’s FSAs may not be diluted despite reservations of power producers, including NTPC, to sign them
NTPC's reservation in signing the Fuel Supply Agreement (FSA) with Coal India (CIL) will not impact the country's largest power producer as CIL will not restrict supply of fuel in the current financial year 2012-13 even if the agreements are not signed.