Rationalization of Coal Linkage: An Inter-Ministerial Task Force (IMTF) was constituted in June, 2014 to undertake a comprehensive review of existing sources of coal with a view to optimize transportation cost and materialization under the given technical constraints. The linkage rationalization for State/Central PSUs was implemented initially, based on IMTF recommendation and carried forward by Coal India Limited (CIL)/Singareni Collieries Company Limited(SCCL) based on coal availability and requests of public sector Power Plants. Policy for Linkage rationalization for Independent Power Producers (IPPs) has been issued on 15.05.2018.

CIL has rationalized sources (subsidiary company-wise) based on the request of public sector power plants with a view to optimize the transportation cost and materialization taking into account coal availability and logistics. Overall coal movement of 61.08 Million Tonnes (MT) has been rationalized with annual potential savings of Rs. 3,651 crore.

The cost of transportation of coal to the electricity plants is borne and maintained by the consumers.

This information was given by the Minister of Coal & Railways, Shri Piyush Goyal in a written reply to a question in Lok Sabha today.

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SVS/MKV/AP

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