The Indian Coal Ministry likely to introduce coal linkage policy for power sector next month.
Post clearing coal linkage auction process and methodology for non-regulated sector, now government is to come up with new linkage policy for regulated power sector in Mar’16. The ministry will provide a fresh linkage to all regulated power utilities, which do not have coal linkage yet.
The ministry will initiate a similar process for the regulated power sector also. Coal linkage mechanism and policy for regulated sector are in the final stage and expected to introduce anytime in Mar’16.
“Government is focusing on more domestic supply coal to power companies and others through linkage policy. Also, the government is trying to ensure that imported demand will replaced with domestic supplies”, stated Coal Secretary.
Ministry is planning to conduct linkage auction for several reasons like to control rising import of thermal coal in the country, to improved fuel supply domestically and better evacuation of pit head coal stock. Moreover, the restructuring of debt for power distribution companies has been also initiated.
Coal India has faced a pit-head stock of in excess of about 40 MnT (as on Feb’16).
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