Centre cancel coal allotments

New Delhi, July 3: The government on Friday cancelled the coal linkages for 25 captive power plant, said the coal minister, Mr Sriprakash Jaiswal.

The minister said that these captive power plants were to generate around 1,292 MW of electricity and required 5.844 million tonnes per annum of coal.

The decision follows a recent exercise undertaken by state-run Coal India (CIL) on the directions from the coal ministry to review all old cases of captive power plants (CPP) that had coal linkages but no coal was being drawn nor was any fuel supply agreement signed.

A large number of CPPs were given linkages of coal and were required to set up their plants and enter into FSA for supply of coal.

However, it was noted that despite a considerable lapse of time a large number of them did not set up the power plant despite having been accorded the coal linkage by the ministry.