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Government Tries to Improve Coal Availability to Power Plants

News

Power plants already in fuel supply pacts with state-run CIL or those having captive mines, will be allowed to purchase coal through e-auction. 

Source: ET

SNP Insight

This may improve the availability of domestic coal to the power plants. Companies can now have domestic coal to fulfill their fuel requirement short fall rather than depending on costlier imported coal. This may result in reduction in power tariff.

As the coal transportation from mine sites is the responsibility of buyer. This may speed up the coal evacuation process in the mining site.  Improve in coal evacuation process may augment the domestic coal production process.

Source: SNP Infra Research