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Captive power projects face coal shortage

Captive power projects face  coal shortage
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Captive power plants are struggling to implement their expansion plan because of coal shortage. Jindal Power, which supplies power to Jindal Power and Steel (JSPL) wants to add another 2,400 mw non-captive capacity by 2015. Yet, it is unable to lock-in coal supply for even half of this capacity.

The Essar Group is another significant player in the captive space that decided to branch out to grid power the same time it entered generation for itself.Currently about 85 percent of its capacity is captive but as its new projects come on stream over the next two years, this is expected to fall to 20 percent, says a senior Essar executive. Now, its 10,000 mw expansion plan that is entirely focussed on non-captive offtake looks doubtful. Essar and Jindal are but two amongst a host of companies like Jindal Poly Films Balco and Bhushan Steel who were initially focused on captive generation but started branching out by supplying to distribution utilities as well. 

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