NEW DELHI | Jul 20, 2016: The Cabinet Committee on Economic Affairs (CCEA) has deferred a decision on policy for award of Coal India contracts to power firms, a person familiar with the matter said.

The CCEA has asked ministries of coal and power to hold further deliberations, said the person, who did not wish to be identified.

The proposal was aimed at auctioning Coal India Ltd coal contracts to private power firms and allotting them to public sector firms in a transparent manner.

As per the proposal, fuel supply contracts to state and central public sector power utilities will be allotted on nomination basis.

The Coal India contracts were proposed to be allocated separately for power plants with power purchase agreements (PPAs) and projects that do not have such pacts.

For plants that have power pacts with electricity distribution companies, the coal contracts were planned to be allocated through an online auction to the highest bidder. About 12000 mw power plants of companies such as Adani Power, GMR Energy and Sterlite Energy do not have coal supply despite having signed PPAs with state distribution companies.

(Source: http://economictimes.indiatimes.com/)