Cabinet approves new coal linkage policy

NEW DELHI (Reuters) - India approved on Wednesday a new coal linkage policy to ensure all power projects get adequate supply through a bid process or power purchase agreements, to help debt-laden generators which have had to import coal despite adequate domestic stockpiles.

Under the policy, state- and central government-owned power generating companies will be granted fuel on the basis of recommendations by the power ministry.

Other companies will have to go through a bidding process, the government said in a statement.

(Reporting by Sudarshan Varadhan; Editing by Biju Dwarakanath)