New task force to review rationalisation of coal linkages

A new Inter-Ministerial Task Force (IMTF) has been constituted to undertake a comprehensive review of existing coal sources and consider feasibility for rationalisation of linkages, the government today said.
"Ministry of Coal had constituted IMTF on June 25 to review the existing sources and consider feasibility for rationalisation of linkages from these sources with a view to reduce the transportation cost for power utilities, cement, steel and sponge iron sector," Coal and Power Minister Piyush Goyal said in a written reply to Lok Sabha.
The major recommendations of the Task Force include acceptance of the recommendations of the functional directors of Coal India Limited (CIL) in respect of rationalisation of existing sources for which it received applications from captive power plants.

Coal India has received a total of 31 applications for rationalisation including eight from captive power plants, out of which it recommended rationalisation in seven cases.
The number of applications from sponge iron plants was 21, out of which rationalisation was recommended in four case, the government said adding in case of cement plants there were two applications which were recommended.
The other recommendations of task force included rationalisation of coal supplies for Sanjay Gandhi and Satpura Thermal Power Plant of Madhya Pradesh Power Generation Company Limited (MPPGCL), reduction in quantity allocated to Gujarat State Electricity Corporation Limited (GSECL) from Korea Rewa fields of C/D grade coal and proportionate increase in Korba fields of South Eastern Coalfields Limited (SECL) by swapping quantities of MPPGCL.

Besides the task force also recommended for rationalisation of sources for Panipat and Rajiv Gandhi Thermal Power Station of Haryana Power Generation Company Limited, Mejia and Koderma Thermal power Stations of Damodar Valley Corporation and Santhaldih, Kolaghat, Sagardighi and Bakreshwar Thermal Power Stations of West Bengal Power Development Corporation Limited.

It also recommended reduction in coal allocation from Mahanadi Coalfields Limited (MCL) and enhancement in coal allocation from Eastern Coalfields Limited (ECL) for the power plants of Tamil Nadu Electricity Board.
"The approved recommendations of the task force were sent to CIL. CIL/coal companies have implemented the recommendations pertaining to rationalisation of sources of consumers of Captive Power Plants, Sponge Iron and Cement Plants," Goyal said.

As regards rationalisation of sources of power utilities, the Task Force's recommendations are all inter-linked and could be implemented only with the consent of all the consumers, he said adding the same could not be implemented as the consumers concerned did not agree to the revised arrangement.