The Association of Power Producers (APP) has demanded setting up of an empowered grÂoup of ministers (EGoM) to reÂview the current bidding conÂtracts in view of the coal shortage. Issues such as lack of domestic coal, environmental clearance for projects and risiÂng cost of imported coal are beyond the control of devÂeÂlopers, and are likely to turn away investors from putting their money in power projects, said the industry body in a letter. These issues have eruÂpted after projects were bid out on competitive bidding criteria in 2005, it argues. APP repÂreÂsents private power firms such as Reliance Power, Tata Power, GMR, Essar and Adani.
The power sector is likely to suffer from an overall coal shortage of 62 million tonne (mt) by the end of the current Plan (March 2012).
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