Coal linkage rationalisation helps thermal plants save Rs 3,770 cr annually

Coal India Ltd (CIL) on Tuesday said about 58 thermal power plants (TPPs) in the country are saving around Rs 3,770 crore per annum in coal transportation cost after the miner had implemented the fuel linkage rationalisation.

A total of 63 million tonne of coal movement is currently involved under the rationalisation policy, CIL sources said.

"An estimated Rs 3,770 crore is being saved annually by 58 thermal power plants in the country in coal transportation costs after the implementation of linkage rationalisation policy by Coal India Limited since 2015," the miner said.

The linkage rationalisation refers to transfer of coal supply source of a power plant from a far end mine to the nearer one.

This arrangement benefits the power plants in reduction of coal transportation cost and ensures quicker supplies of the fuel and greater availability of railway rakes, the sources said.

Initially, 19 thermal power plants were identified by the task force for linkage transfer. These plants belonged to state-run power generating companies like WBPDCL, DVC, DPL, Mahagenco, GSECL, NPTC to name a few.

In May 2018, linkage rationalisation was also extended to independent power plants.