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Power Plants Seek Extension of Temporary Coal Supply Agreements

<p>Coal-fired power plants with total installed capacity of around 9,000 MW are asking for extension of temporary coal supply contracts for at least six years, since they have not been able to start production from the captive blocks allotted to them more than three years ago. Delays in land acquisition, forest clearance and issue of possession letters from states have delayed production at these mines. These plants are likely to require between 35 million and 40 million tonnes of coal to run at 80% capacity. This coal could have been supplied to other users who do not have captive blocks if production from the allotted coal blocks had started on schedule</p>