Many private power companies in the country were violating the terms and conditions of coal block allocation, the Central Bureau of Investigation (CBI) under the jurisdiction of Supreme Court (SC) and the Union Power Ministry (MoP) have found in their probe. These companies had been allocated coal blocks as they had submitted that they planned to set up power plants and sell power to distribution companies (discoms).
The Power Ministry has found that some of these companies are not complying with this directive.
The Ministry suspect that these companies have no intention of selling power to discoms but want to sell it to industries or at exchanges as it fetches higher rates.