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Coal Linkage Rationalization

  • In 2017, CIL has done source rationalization of 12 state owned power plants based on the requests from these plants. The quantity rationalized was about 13 MT. The approximate potential annual savings in transportation cost by these power plants would be to the tune of Rs 774 crore, details of which are as under:
  • Sr. No State/ Developer Power Plant Quantity rationalized

    (in MT)

    Potential Annual Savings

    (in Crore)

      Maharashtra Bhusawal 2.312 415
    1 Paras 1.204
      Chandrapur 1.525
    2 Haryana RGTPP 1.33 50
    3 (JV of NTPC & HPGCL) APCPL, Jhajjar 1.13 31
      Gujarat Wanakbori 3  
    4 Ukai 240
      West Bengal Bakreshwar 1.2 2
    5 Kolaghat
    6 Uttar Pradesh Paricha 1.2 36
    Total 12.901 774


    Total coal movement rationalization of 54.76 MT has taken place with annual potential savings of Rs. 3354 crore.

    An Inter-Ministerial Task Force (IMTF) was constituted in July, 2017 to undertake a comprehensive review of existing coal sources of Independent Power Producers (IPPs) having linkages and consider the feasibility for rationalization of these sources with a view to optimize transportation cost given the various technical constraints. The underlying objective behind the exercise was to reduce the landed cost of coal due to reduction in transportation cost. The methodology for linkage rationalization for IPPs has been accepted by the Government and the same has been circulated on 15.05.2018 to the CIL/SCCL to implement the methodology.

    This information was given by the Minister of Railways, Coal, Finance & Corporate Affairs, Shri Piyush Goyal in a written reply to a question in Rajya Sabha

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