New Delhi: The government has readied a scheme to auction power purchase agreements (PPAs) with attached coal supplies from Coal IndiaNSE 2.40 %. The auction of short-term PPAs with coal supplies is expected to help some of the about 10GW power plants idling due to lack of fuel and power contracts.
A senior government official said the auction framework has been prepared with likely allocation of about 12 million tonnes in annual commitment from Coal India Ltd (CIL). “In the proposed auction scheme, the bidders will be informed about the availability of coal supply from the various CIL subsidiaries and mines. Tariff-based competitive bids will be invited from companies based on these inputs,” he said.
