Central government to auction PPAs with attached coal supplies

The central government is working on a scheme to auction power purchase agreements (PPAs) with attached coal supplies from CIL. The proposed auction of medium-term PPAs with coal supplies is expected to help plants with a capacity of about 10 GW that are stressed due to lack of fuel and power contracts. In the proposed scheme, the bidders will be informed about the availability of coal supply from various CIL subsidiaries and mines. Tariff-based competitive bids are expected to be invited from companies for 2,500 MW of capacity for three years.