April 30, 2024 12:37 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Congress' frustration': Amit Shah on his doctored clip showing he advocated abolition of reservations | Amit Shah slams Congress over HD Deve Gowda's grandson Prajwal Revanna's 'sex scandal' | Heavy rains trigger massive landslides in Kashmir, Srinagar-Jammu highway closed | In a relief for Mamata govt, SC halts CBI probe against Bengal officers in teacher's recruitment scam | 'Government at a standstill' after Arvind Kejriwal arrest, says Delhi High Court
Rationalization of coal linkages results in rationalizing 92.16 MT of coal with potential savings of Rs 6,420 cr Coal Linkages
Image Courtesy: Pixabay

Rationalization of coal linkages results in rationalizing 92.16 MT of coal with potential savings of Rs 6,420 cr

India Blooms News Service | @indiablooms | 02 Sep 2023, 12:48 am

New Delhi: The policy of rationalization of coal linkages, initiated by the Ministry of Coal, has resulted in the rationalizing of a total of 92.16 million tonnes (MT) of coal, with an annual potential savings of around Rs 6420 crores.

So far, four rounds of rationalization of linkage have taken place, covering 73 Thermal Power Plants (TPPs), out of which 58 belong to State/Central Gencos and 15 to IPPs, according to the Coal Ministry

The policy involved reducing the distance in transportation of coal from coal mines to consumers, thereby decreasing transportation costs and increasing efficiency in coal-based power generation, it said.

This policy aims to substantially reduce transportation costs thereby curbing fuel expenses, delivering tangible benefits to consumers.

Coal linkage rationalization in the power sector has resulted in a decrease in transportation costs from the mines to the power plants leading to more efficient coal-based power generation.

The exercise helps in reducing the load on the transportation infrastructure, easing the evacuation constraints as well as reducing in landed cost of coal, the Ministry said.

Linkage rationalization for State/Central PSUs was implemented initially, based on the recommendation of the Inter-Ministerial Task Force (IMTF) which was constituted in June 2014.

Another IMTF was constituted in July 2017 to rationalize the linkages of the Independent Power Producers (IPPs).

The methodology for rationalization of coal for IPPs/Private sector plants was also issued on 15.05.2018.

An IMTF was also constituted in October 2018 to examine the possibility of further rationalization of coal linkages, including Swapping imported coal being transported to hinterland with domestic coal transported near coastal areas.

As part of the Ministry of Coal's comprehensive strategy for the rationalization of coal linkages, Coal India Limited has taken a significant step by inviting Expression of Interest (E.O.I) from both Independent Power Producers (IPPs) and Generating Companies (Gencos).

Through the Rationalization of Coal Linkage, Coal PSUs are not only optimizing operational efficiency but also driving down costs and fostering a more sustainable energy ecosystem, the ministry said.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.