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APP: set up EGoM on coal contracts

APP: set up EGoM on coal contracts

The Association of Power Producers (APP) has demanded setting up of an empowered gr­oup of ministers (EGoM) to re­view the current bidding con­tracts in view of the coal shortage. Issues such as lack of domestic coal, environmental clearance for projects and risi­ng cost of imported coal are beyond the control of dev­e­lopers, and are likely to turn away investors from putting their money in power projects, said the industry body in a letter. These issues have eru­pted after projects were bid out on competitive bidding criteria in 2005, it argues. APP rep­re­sents 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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