Coal Ministry Panel to Review Coal Linkage for 4,000 MW Power Projects in Madhya Pradesh.

The Coal Ministry’s Standing Linkage Committee (Long-Term) [SLC (LT)] for the power sector will meet on November 26, 2024, to review the Power Ministry's recommendation for granting long-term coal linkage to Madhya Pradesh. This linkage would support 4,000 MW of new thermal power capacity in the state, with coal drawal projected to begin in FY29 and FY30.

In July 2024, the Power Ministry proposed allocating long-term coal linkages under the SHAKTI Policy's Para B (iv) to facilitate Madhya Pradesh's efforts to address the growing need for coal-based capacity. The state requires an additional 4,100 MW of coal-based power by FY32, according to its resource adequacy plan for 2024–2035, which is above the 1,230 MW already approved under the SHAKTI Policy.

The push for additional coal-based capacity comes as the Power Ministry targets an increase of 80 GW of coal-based power generation nationwide by FY32. Currently, 26 GW of coal-based plants are under construction. To bridge capacity gaps, the ministry has urged states like Madhya Pradesh to either add new capacity using their resources or procure power through competitive bidding under the Tariff Policy, 2016, or the SHAKTI Policy.

Madhya Pradesh has been actively leveraging the SHAKTI Policy for coal linkage. In September 2022, the SLC (LT) approved the continuation of coal linkages for 1,230 MW of power, sourced through a tariff-based competitive bidding process, for a new power station in the state.

The upcoming review underscores the government's focus on ensuring resource adequacy as power demand grows, and Madhya Pradesh’s efforts to secure its energy needs through long-term planning and strategic policy implementation.

HBL