Award of fresh coal supply contract by government is positive for the power sector: ICRA
Kolkata: Centre’s initiative to offer new long term supply contracts through auctions for power plants with power purchase agreements but without coal supply agreements will have a positive impact for coal-based power plants says ICRANSE 1.04 % in a recent report.
The government has proposed the minimum tariff discount to be quoted by the bidders for securing coal linkage at 7 paise per unit. The latest discount is higher than 1 paise per unit base discount set under the first round of auction held in September 2017 and 4 paise per unit base discount set under the second round of auction for coal linkages held in May 2019. The base discount for the third round of auction is equal to the bid discount discovered in this second auction.
