The Indian Chamber of Commerce (ICC) has claimed that a new recommendation of CEA will further deepen the country's coal crisis. ICC has learnt that Independent Power Plants (IPP) located within 150 km of the nearest sea port are being considered to meet only 30% of their annual requirement of coal through imports. This - claims ICC - implies that a number of port-based Independent Power Plants (IPPs) that are meant to be coming up based on 100% imported coal will now become eligible to secure linkage or captive coal block to the extent of 70% of their total requirement.
Speaking on this issue, Vishambhar Saran, president, ICC stated, “In view of the prevailing shortage of coal, Coal India Ltd is already unable to meet the requirement of coal for the Independent Power Plants, Captive Power Plants, Steel Plants & Cement Plants etc. The proposed recommendation of CEA will only aggravate the shortage of coal for Independent Power Plants which are coming up entirely based on domestic coal supplies through linkage or captive coal blocks.”
Most of India's coal deposits are located in the Eastern states like West Bengal, Orissa, Chhattisgarh and Jharkhand while most of the port-based IPPs are coming up on the Southern and Western coasts of the country. Pointing this out, Saran said, “It will not be in the national interest to allow transportation of high ash coals from the Eastern Region all the way to Southern or Western coasts of India for generation of power when the IPPs at these ports can easily meet their requirement entirely through imports.”
ICC has further remarked that the move will also add to the problems arising due inadequate railway infrastructure. It has recommended that all the port based Power Plants which are meant to be dependent on 100% imported coal must not be given any linkage or Captive Coal Blocks in India and they must continue to be dependent on 100% imported coal.
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