Coal linkage rationalisation helps thermal plants save Rs 3,770 cr annually

Coal India Ltd (CIL) on Tuesday said about 58 thermal power plants (TPPs) in the country are saving around Rs 3,770 crore per annum in coal transportation cost after the miner had implemented the fuel linkage rationalisation.

A total of 63 million tonne of coal movement is currently involved under the rationalisation policy, CIL sources said.

"An estimated Rs 3,770 crore is being saved annually by 58 thermal power plants in the country in coal transportation costs after the implementation of linkage rationalisation policy by Coal India Limited since 2015," the miner said.

The linkage rationalisation refers to transfer of coal supply source of a power plant from a far end mine to the nearer one.

This arrangement benefits the power plants in reduction of coal transportation cost and ensures quicker supplies of the fuel and greater availability of railway rakes, the sources said.

Initially, 19 thermal power plants were identified by the task force for linkage transfer. These plants belonged to state-run power generating companies like WBPDCL, DVC, DPL, Mahagenco, GSECL, NPTC to name a few.

In May 2018, linkage rationalisation was also extended to independent power plants.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel