MPs ask govt to cancel coal linkages awarded to power projects

MPs ask govt to cancel coal linkages awarded to power projects
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First Published: Sun, Oct 26 2008. 12 52 PM IST
Updated: Sun, Oct 26 2008. 12 52 PM IST
PTI
New Delhi: Members of Parliament have asked the government to cancel all previous coal linkages awarded to power projects, which have not made any progress and are not likely to be commissioned in the 11th Five-Year Plan.
In a letter to Prime Minister Manmohan Singh, the MPs have requested to ensure that transparency is maintained by awarding coal linkages only to priority projects which have funds tied up.
“Ministry of Power and Ministry of Coal may be instructed to cancel all the previous coal linkages awarded for projects, which have not made any progress and are not likely to come up in the 11th Plan (2007-12),” the letter said.
It is pertinent to mention that lot of thermal power projects in the country are facing acute shortage of coal and the same has been admitted by the Minister of Power Sushilkumar Shinde in Parliament last week, it said.
On top of it, the government has also awarded Ultra Mega Power Projects in different states and some of the projects are getting delayed as the coal linkages could not be finalised.
Ministry of Power has been revising its priority power projects list for the 11th plan period and again, the present list includes projects like Sophia Power Company Ltd, Thermal Powertech Corporation Ltd, Athena Chhattisgarh (Pvt) Ltd etc, front run companies promoted by politicians and bureaucrats.
These are newly formed companies with no equity or funds tied up and do not have prior experience in power projects.
Ministry of Coal had given fuel linkages to over 60,000 MW of power projects last year. Many of them have not even started construction and would not be able to come up during the 11th plan, the letter said.
It added that the ministry is scheduling a meeting for awarding long-term coal linkage for power projects during this month.
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First Published: Sun, Oct 26 2008. 12 52 PM IST