Govt revokes coal supplies to 25 pvt power cos

NEW DELHI (Reuters) - India has cancelled allocation of coal supplies to 25 private power companies for not setting up plants that can annually generate 1,292 megawatts, the coal minister said on Friday.

The country had assured coal supplies to several private firms for setting up their power plants. These firms are required to enter into fuel supply agreement with Coal India Ltd, a state-run monopoly coal producer.

"However, it was noted that despite considerable lapse of time a large number of them did not set up the power plant despite having been accorded coal linkages by the ministry," Sriprakash Jaiswal told reporters.

The companies, whose licenses have been cancelled, were expected to consume 5.844 million tonnes of coal every year.

Jaiswal said the government may cancel the coal linkages of another 19 companies if they fail to provide details on their project status to Coal India in 15 days.

The government, however, has asked 7 other firms to sign a fuel supply agreement with Coal India, Jaiswal added.