Coal India Limited (CIL) has invited applications from independent power producers to take part in the auction of coal linkages under the Scheme for Harnessing and Allocating Koyala Transparently in India (Shakti). Interested entities have to register on the website of auction firm MSTC Ltd on or before August 7, 2017.
In May, the Ministry of Coal had directed the coal producer that the miner may grant coal linkages to the power producers or independent power producers (IPPs) having long term power purchase agreements. The ministry also said the coal linkage auction would be based on discounts on the power tariff.
The discount by generating companies would be adjusted from the gross amount of bill at the time of billing, i.e., the original bill shall be raised as per the terms and conditions of the PPA and the discount would be reduced from the gross amount of the bill.
The ministry had also said CIL/SCCL may grant future coal linkages on auction basis for power producers/IPPs without PPAs that are either commissioned or to be commissioned.