CIL Allots Provisional Matrix for Linkage Rationalisation

With reference to the notice issued by CIL on 21st May’18 regarding rationalisation of linkages, a total number of 8 state/central power gencos have submitted their EOI for transfer of coal source.

CIL has floated a detailed matrix for the transfer request made under the linkage rationalisation, aimed to reduce the transportation cost of coal to the desired plant location.

For instance, NTPC’s Mauda St-II power plant and Solapur TPS both located in Maharashtra were having coal linkages from MCL which operates in Odisha. Hence, in order to reduce the transportation cost these plants have requested a transfer of coal linkage to WCL which operates its coal mines in Maharashtra. Similarly, other plants have made such requests to cut down the transportation cost of coal.

However, RRVUNL request for its Kota power plant for a change in coal field within SECL, i.e., from Korba to Korea-Rewa, has not been taken into consideration. Besides, TANGEDCO also requested for source rationalisation of the side-agreement quantity, which has not been taken into consideration.

None of the plants in the list were having an existing coal linkage from NCL and WCL, but following the proposed linkage rationalisation, a number of power plants had wish to procure coal from these two subsidiaries.

The following are the total quantities desired to switch out and switch in the coal companies:

Quantity in MnT

CIL has made it clear that in the absence of any surplus/additional coal availability indicated by the coal companies, no scope for further linkage rationalisation is found for other requests.

Since no surplus availability have been indicated by any coal company so far, the following requests can only be accommodated at this stage should there be no additional burden of intake on any particular coal company.

The provisional matrix has been put forward to seek comments of stakeholders (including CEA, Railways and SCCL). CIL would further seek consent from the coal companies to examine the scope for accommodation, before publishing the final matrix by 11 Jun’18.

Detailed matrix showing existing linkages and transfer requests:

Quantity in MnT