The Ministry of Coal has issued the methodology for rationalising coal linkages from coal companies to reduce the distance in the transportation of the commodity from the mines to consumers. The exercise is expected to help in reducing the load on the transportation infrastructure and easing evacuation constraints, a government release said
The past rationalisation exercises implemented only for the power sector have resulted in the rationalisation of coal movement of 63.12 million tonnes (MT) of coal, with annual potential savings of around Rs 37.69 billion. The present methodology on linkage rationalisation covers the power as well as the non-regulated sector (NRS) for all types of consumers. Besides, coal swapping with imported coal has also been permitted.
The scheme envisages the transfer of coal quantity in terms of gross calorific value (GCV) equivalence and is applicable for non-coking coal only. The arrangement shall be allowed only within the same sector, viz. NRS (non-regulated sector) with NRS and power (regulated sector) with power. Participation in the scheme shall be voluntary and arrangements between the parties rationalising or swapping coal through rail and sea modes shall be bilateral. Coal India Ltd (CIL) shall be the nodal agency for conducting the process of linkage rationalisation and swapping of coal.
A committee shall oversee the implementation of the scheme and address key issues in the implementation. The willing participants and consumers shall register on the electronic platform for rationalisation and submit the requisite information. The savings accrued in the process shall be transferred to Indian Railways and power distribution companies.
On May 20, the Cabinet Committee on Economic Affairs (CCEA) had approved the methodology for auction of coal and lignite mines or blocks on revenue sharing basis and increasing the tenure of coking coal linkage.