National miner Coal India needs to ramp up its output by at least 8 percent from the present levels if the group of ministers’ (GoM) recommendations on allowing domestic coal linkage for short-term PPAs are to be met, says a report.
The Cabinet Committee on Economic Affairs had Thursday approved the GoM recommendations on stressed power projects which include allowing domestic coal supplies to short-term PPAs and increase coal supplies for special forward e-auction for the power sector.
“The measures approved such as allowing the use of domestic linkage coal for short-term PPAs and procurement of bulk power by nodal agencies against pre-declared linkages are a positive for thermal IPPs, given that coal-based operational capacities of 15-16 gw do not have long-term PPAs,” Icra said in a report Friday.
