Captive power producers see rise in coal prices

Industries banking on their own power projects are increasingly unable to operate their captive plants at full capacity as prices have shot up after the government reduced the quota of coal to be offered in auctions so that more fuel is made available for independent power producers. These units had already been facing a coal shortage for the past five to eight years and the situation has worsened after the government´s curbs on auctions. It also started rationalising supply agreements, known as fuel linkages, to optimise transport of coal and reduce the cost of power.