Inter-ministerial task force on coal linkage rationalisation to meet stakeholders this week

The inter-ministerial task force studying the feasibility of further rationalisation of fuel linkages, including swapping of imported coal, may meet the stakeholders this week to take the matter forward.

The development comes at a time when the import of coal has increased 9.7 per cent to 156.08 million tonne (MT) in the April-November period of the ongoing fiscal.

"An inter-ministerial task force is examining the possibility of further rationalisation of coal linkages, including swapping of imported coal being transported to hinterland with domestic coal transported near coastal areas.

"In this regard, a meeting with the coal consumers in the regulated sector is scheduled for December 21, 2018...to discuss the issues and way forward," according to government's notice to the stakeholders.

In order to optimise transportation cost, the inter-ministerial task force was constituted by the coal ministry for a comprehensive review of existing coal sources and also for feasibility of rationalisation of the sources.

The coal ministry had earlier said rationalisation of sources of coal for power plants under public sector units has resulted in annual savings of Rs 3,354 crore.

The task force recommended rationalisation of existing sources on case to case basis for 19 thermal power plants of PSUs (public sector undertakings).

Further, the government had said it has permitted flexibility in utilisation of domestic coal by allowing central/state utilities to use the fuel in such power plants to achieve overall reduction in cost of generation.

Besides, it was decided that all power plants located within 20 km from pit-head shall construct elevated closed belt conveyor within next two years (up to 1 April 2020).