Coal India Ltd.

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.