Methodology Issued for Rationalization of Linkages/ Swapping of Coal

The coal linkages from coal companies have been rationalized in order to reduce the distance in transportation of coal from the coal mines to the consumer. The exercise shall help in reducing the load on the transportation infrastructure and easing the evacuation constraints.

 The past rationalization exercises were implemented only for Power Sector and have resulted into rationalization of coal movement of 63.12 MT of coal with annual potential savings of around Rs. 3769 crore. Unlike the past rationalization exercises, the present methodology on linkage rationalization, covers the Power as well as Non-Regulated Sector (NRS), for all types of consumers and coal swapping with imported coal has also been permitted.

The scheme envisages  transfer of coal quantity in terms of gross Calorific Value (GCV) equivalence and is applicable for non-coking coal only. The Arrangement shall be allowed only within the same sector viz. NRS (non-regulated sector) with NRS and Power (regulated sector) with Power.  Participation in the scheme shall be voluntary and arrangement between the parties rationalizing/swapping coal through rail and/or sea mode shall be bilateral.  Coal India Limited (CIL) shall be the nodal agency for conducting the process of linkage rationalization/swapping of coal.  A committee shall oversee the implementation of the scheme and address key issues in the implementation. The willing participants / consumers shall register on the electronic platform  for rationalization and submit the requisite information. The savings accrued in the process shall be  transferred to Indian Railways/DISCOM(s).