Coal India Ltd (CIL) has invited Expression of Interest (EOI) from desired Independent Power Plants (IPPs) who wish to rationalise their existing coal linkages.
Linkage rationalisation is a process initiated by the Ministry of Coal, wherein coal linkage of a power plant is transferred from one coal company to another depending on the coal availability and future plan of the company.
The underlying objective is to reduce the landed cost of coal due to reduction in transportation cost and cost of coal.
In this regard, CEA (Central Electricity Authority) has provided a sheet to calculate cost saving on account of linkage rationalisation.
| Original Linkage | Rationalised Linkage | |
| Base Price of Coal (INR/MT) | Po | Pr |
| Gross Calorific Value (kCal/kg) | GCVo | GCVr |
| Linkage Quantity (in MT) | Qo | Qr=(GCVo*Qo)/GCVr |
| Distance from transportation (in km) | Do | Dr |
| Total Transportation cost (in INR) | To=f(Do,Qo) | Tr=f(Dr,Qr) |
| Cost Saving (in INR) | (To-Tr)+(Qo*Po-Qr*Pr) | |
The sheet is taken as a base formula for calculating the cost savings due to change in transportation distance and change in GCV of linkage coal, and the IPPs which are ready to pass on this per unit cost savings to the discoms/buyers shall be eligible for applying linkage rationalisation requests with the coal companies.
Interested power producers have been thereby requested to submit their Expression of Interest till 11 Sep’18 in the prescribed format. The plants are also requested to present an affidavit for correctness of the information furnished by them.
E-mail id for correspondence: gmsnm.cil@coalindia.in, cilcontract@gmail.com
Linkage Rationalisation for State/Central Gencos:
CIL had previously carried out the rationalisation exercise for State/Central generating companies (Genco), before scheduling it for the IPPs.
A total of 8 power gencos had submitted their EOI for 21 plants for which a provisional matrix was also released by CIL. However, after much deliberation with SCCL, CEA and Railways, CIL has approved only 7 such transfer request made by the power plants which are listed below.
Final Rationalisation Matrix for State/Central Gencos
| Name of Plant | Central/State Genco | ECL | BCCL | CCL | MCL | WCL |
| DPL Durgapur | DPL | +0.2 | – | – | -0.2 | – |
| Koderma | DVC | -0.2 | +0.2 | – | – | – |
| Raghunathpur | DVC | – | -0.2 | – | +0.2 | – |
| Ropar | PSPCL | – | -0.5 | +0.5 | – | – |
| Mauda | NTPC | – | – | – | -2.545 | +2.545 |
| Solapur | NTPC | – | – | – | -1.275 | +1.275 |
| Tuticorin | TANGEDCO | – | – | -0.5 | +0.5 | – |
All Figures in MnT
(+) sign indicates quantity switching in to a coal company
(-) sign indicate quantity switching out of a coal company
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