(ET)
The government is preparing to auction supply of coal to stressed power plants, which must sell the electricity produced using this fuel on the spot market.
The auctions, likely to start by February next year, will be reserved for non-captive power plants which do not have power purchase agreements (PPAs) for more than half their capacity, according to the bid guidelines released by the power ministry. Power minister RK Singh told that the move allowingcoal supply for short-term electricity trade would help revive stressed power assets.
“So far, coal was allocated for long-term and medium-term PPA holders. With this, stressed power stations may be revived,” the minister said, adding that this would also enable deepening of the power market as the electricity would be traded through the power exchange.
