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Home » Light at the end of tunnel

Light at the end of tunnel

By February 11, 2015 11:01 pm IST

EPR (Electrical & Power Review) | EPR Magazine
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 Coal-based power plants are going through a tumultuous phase and struggling to meet with daily demand. Many plants are forced to run at a lower capacity due to inadequate supply of coal. Now, with the government’s decision to auction 101 coal blocks in-line with the Supreme Court’s directive is expected to bring cheers, especially for the country’s fuel-starved power industry.
In September last year, the Supreme Court had scrapped the allocation of 204 out of 218 coal blocks to various companies since 1993 terming the whole process ‘illegal’. Later, the Cabinet approved re-promulgation of the coal ordinance and necessary guidelines for mine allocations.
Experts feel that it is as a consequence of coal ordinance that has enabled us to go ahead with the auction. Otherwise coal block auctions could not have possible. The government is confident of completing the allocation process for these 42 coal blocks by 31st of March. It is understood that auctioning of coal blocks would help ease uncertainty among the thermal power plants.

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