Coal linkages panel asks GVK Power to get fuel via e-auction

An inter ministerial panel on coal linkages has asked GVK Power to procure coal through forward e-auction route for its 540 mw (2x270 mw) Goindwal Sahib thermal power plant in Punjab.

Standing Linkage Committee (Long-Term) for coal linkages clarified that "the MoU for coal supply (to GVK Power Goindwal Sahib plant) was valid till June 30, 2016 and this would not be extended. 

The project proponent (PP) was advised to obtain coal through special forward e-auction route," a coal ministry official said. According to the official, GVK Power had conveyed to the government that the plant has been commissioned but there was no coal available for the plant.

The company had also informed that 100 per cent power was sold to Punjab State Power Corporation (PSPCL) through long- term PPA. It requested for coal linkage for the plant as the asset was lying idle for want of fossil fuel, the official said. GVK Power has said they have achieved plant COD (commercial operation date) and PSPCL has accepted the same for Unit 1 with effect from April 6, 2016 and for Unit 2 from April 16, 2016. 

"Unit 1 has started commercial operation w.e.f April 16, 2016 but could not sustain the continuity of operation beyond April 22, 2016 due to non-availability of coal as their Tokisud North captive coal mine was cancelled," the official said.