Delhi:The Ministry of Coal has finalised the methodology for rationalisation of coal linkages for independent power producers (IPPs), which will help in reducing transportation cost of coal and lead to savings in power generation.
Now, IPPs will have the option to procure coal from a company other than the one with which they have signed the pact.
An inter-ministerial task force had made its recommendations on the methodology to optimise transportation cost, reduce power generation cost and eventually pass on the benefits to the end consumer.
As per the policy released on Wednesday, “Coal linkage rationalisation shall be an exercise in which the coal linkage of a thermal power plant of an IPP may be transferred from one coal company to another based on the availability during the fiscal and future coal production plan of the coal company,” read the ministry’s statement.
The thermal power plants will have to voluntarily opt for the option to reduce the distance between the coal mines and the power plant.
“This move will also help in easing up of railway traffic, wherein other sectors, too, will benefit. It will also create a level playing field for the power producers,” said a Mumbai-based analyst.
“The one-time process of calling for the requests of the IPPs for linkage rationalisation shall be undertaken jointly by Coal India Ltd, Singareni Collieries Company Ltd and Central Electricity Authority in a transparent manner,” the statement added.
The fuel supply agreement of the rationalised source from any coal company would be signed or implemented only after the appropriate electricity regulatory commission approves the supplementary agreement.
LESS BURN
Now, independent power producers will have the option to procure coal from a company other than the one with which they have signed the pact; it will lead to cost saving