In a major roadblock to Lanco Power, Coal India’s subsidiary- South Eastern Coalfields (SECL), has reportedly discontinued coal supply to Unit-2 of former’s Amarkantak power project in Chhattisgarh, in terms of company’s non-abidance of coal ministry’s directive of inking long-term power purchase agreement (PPAs) with any state distribution company (discom).
Conversely, the company has signed a PPA with PTC India, Government of India initiated Public-Private Partnership and Chhattisgarh Power Trading Company for supplying 65% and 35% of power generated from Unit-2 of the project.
As per the guidelines floated by the coal ministry all the power producers are required to ink long-term PPAs with discoms to be eligible for coal supply at notified prices, which are at least 20% cheaper than the floor price of coal provided by CIL in e-auction.
| Company Name | CMP |
|---|---|
| Coal India | 434.25 |
| NMDC | 85.08 |
| GMDC | 602.70 |
| Sandur Manganese | 202.10 |
| MOIL | 305.65 |
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