Mr KC Venugopal minister of state for power informed the Rajya Sabha that the ministry of power has added the following criteria for getting coal linkage for power projects (Central/State/Private) in 12th Plan.

The minister said that “Actual drawal of coal will be subject to 85% of power being tied up through long term PPA with DISCOMs through tariff based competitive bidding (except for PSU projects where PPAs were signed by January 5th2011)”.

The Government of Madhya Pradesh has inter alia informed that with the above amendment in coal linkage policy, the developers who have entered into Power Purchase Agreement with the government of Madhya Pradesh would not be able to draw coal against the linkages, as they are not left with 85% power for supply through competitive bidding. Accordingly, government of Madhya Pradesh has requested to reduce requirement, to tie up power from competitive bidding from 85% to 60% for drawal of coal by Independent Power Producers.