State-run, Coal India has suspended coal supply to several power plants in the country due to non-payment of guarantees in time.
The company circulated a list of 62 power plants to its subsidiaries asking them to suspend supplies to the power plants due to their failure to pay commitment guarantees within the specified period of time. The decision to suspend supplies was taken at a meeting of coal ministry's Standing Linkage Committee (Long Term) for Power that was held earlier in February.
The company has stopped coal supplies to power plants including Tata Power's 120 mw Unit 5 plant at Jojobera in Jamshedpur, and Durgapur Projects Ltd's 300 mw unit at Durgapur, who are both supplied by Coal India's units.
The list also includes hushan Power and Steel, Grasim Industries, Bokaro Power Supply Co Pvt Ltd, the proposed project of JSW Aluminium in Andhra Pradesh, Jai Balaji Sponge, Ankit Metal and Power, JK Tyres, Ginni Filaments, Electrotherm India, Gujarat Flurochemicals, Sunflag Iron and Steel, Vardhaman Acrylics and several units of Maharastra Energy Development Agency.
Under the newer Fuel Supply Agreements, the company does not ask for commitment guarantee and retains the concept of security deposits.