Govt comes out with methodology for rationalisation of coal linkages

New Delhi: The government on Tuesday said that fuel linkages from coal companies have been rationalised to reduce the distance in transportation of coal from the mines to users. The move is aimed at reducing the load on the transportation infrastructure and easing the evacuation constraints.
"Unlike the past rationalisation exercises, the present methodology on linkage rationalisation, covers the power as well as non-regulated sector (NRS), for all types of consumers," the coal ministry said in a statement.

The past rationalisation exercises were implemented only for the power sector and have resulted into rationalisation of coal movement of 63.12 million tonnes (MT) of coal with annual potential savings of around Rs 3,769 crore.

The scheme envisages 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.

"Participation in the scheme shall be voluntary and arrangement between the parties rationalising/swapping coal through rail and/or sea mode shall be bilateral," it said.

Coal India (CIL) shall be the nodal agency for conducting the process of linkage rationalisation.

A committee shall oversee the implementation of the scheme and address key issues in the implementation.

The willing participants / 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/discoms.