Subsidiary companies of Coal India have issued 175 Letters of Assurance (LoA) for coal supply, covering the capacity of 1,08,878 mw, said the Union Minister of State for Coal Pratik Prakash Bapu Patil in Rajya Sabha on April 29. During the last three years of 11th Plan, capacity of about 26,000 mw has been commissioned and the balance capacity of about 82,000 mw is likely to be commissioned during 12th Plan period and beyond, he added in a writter reply.    

Since LoAs amounting to more than 80,000 mw for setting up the power projects already exist, there is prima facie no scope for the grant of new coal linkages/LoAs for 12th Plan Power Projects. The Minister further said that considering the gap between coal demand and its indigenous availability, government of India has over the years reduced the import duty on coal to zero per cent for coking coal and 5 per cent for non-coking coal in 2004-05.    

Further, in the Union Budget for 2013-14, in respect of steam coal and bituminous coal, the government has reduced the import duty to 2 per cent and has levied countervailing duty of 2 per cent.