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Scheme to Rationalize the Coal Linkages

Published on Friday, July 17, 2020
Scheme to Rationalize the Coal Linkages
  • Launched date: 9th June 2020
  • Aim: To reduce the load on the transportation infrastructure and to relieve the evacuation constraints.

Key Points:

  • Previously these rationalization exercises were implemented only for Power Sector and the rationalization of coal movement of 63.12 MT of coal which resulted in an annual potential savings of around Rs. 3769 crores.
  • But now the rationalization of coal covers the Power as well as Non-Regulated Sector (NRS), for all types of consumers and coal swapping with imported coal, has also been granted.
  • Under this scheme, it forecast the transfer of coal quantity in terms of Gross Calorific Value (GCV) equivalence which is applicable for non-coking coal only.
  • Also, the consumers of coal may transfer coal linkages from one company to another based on the accessibility during the fiscal and future coal production plan of the company. It will reduce the load on the transportation infrastructure.
  • Coal India Limited (CIL) shall be the nodal agency for the process of linkage rationalization/swapping of coal. The eligible participants/consumers shall register on the electronic platform for rationalization and submit the requisite information.
  • The savings accumulated in this process shall be transferred to Indian Railways/DISCOM(s).

About Coal India:

  • Headquarters: Kolkata
  • CEO: Anil Kumar Jha
  • Owner: Government of India
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