New Delhi : In line with various measures being taken in view of increasing power demand, Power Ministry has amended the methodology for use of coal (allocated to states) by Private Power generating stations (IPPs). Larger visibility has been given to the power plants by extending the period of supply of coal from 1 year to 3 years. The amendments are enclosed as Annexure I. The Ministry has further made amendments in the timeline of bidding process which has been reduced from 67 days to 37 days. Details of Amended timelines are given in Annexure II. The measures have been taken for ensuring more efficient utilisation of domestic coal.
The Government has taken these measures in order to optimally utilise the railway infrastructure for maximum transportation of coal to the power plants. The ministry said that this would enable States to optimally utilize their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off States.