The government said on Tuesday that the coal companies’ fuel links had been streamlined to reduce the distance from the mines to users in the transport of coal. The aim of the move is to reduce the load on the transport infrastructure and to ease the evacuation constraints.
“Unlike the past rationalisation exercises, the present methodology on linkage rationalisation, covers the power as well as non-regulated sector (NRS), for all types of consumers,” the coal ministry said in a statement.
Past rationalization exercises were carried out only for the power sector and resulted in a rationalization of the coal movement of 63.12 million tons ( MT) of coal with an annual potential savings of approximately Rs 3.769 crore.
The scheme allows for the conversion of coal quantity in terms of gross Calorific Value (GCV) equivalence and applies only to non-coking coal.
The arrangement is only permitted in the same business.
“Participation in the scheme shall be voluntary and arrangement between the parties rationalising /swapping coal through rail and/or sea mode shall be bilateral,” it said.
Coal India (CIL) is the nodal agency for the rationalization of linkages.
The Committee shall oversee the implementation of the scheme and resolve main implementation issues.
Voluntary participants / consumers shall register on the electronic streamlining platform and submit the required information.
The savings incurred during the process shall be transferred to Indian Railways / Discoms.
