With reference to the direction issued by the Ministry of coal regarding rationalisation of coal linkages for power producers, Coal India Ltd (CIL) has invited Expression of Interest (EoI) from the desired State/Central Power Generating Company proposing for rationalisation of their existing linkages.
Methodology for Linkage rationalisation was approved by the competent authority of Ministry of Coal in its board meeting held on 15 May’18.
The Linkage rationalisation was depicted as an exercise in which coal linkage of a Thermal Power Plant (TPP) of an Independent Power Producer (IPP) may be transferred from one Coal Company to another based on coal availability and future coal production plan of the company.
The underlying objective behind this exercise was to reduce the landed cost of coal due to reduction in transportation cost. The reduced landed price of coal shall lead to savings, which would be reflected in cost of power generated eventually passed on to the buyers of power through a transparent and objective mechanism.
The Coal Ministry had mandated the coal companies to carry out the rationalisation process for State/Central Gencos in an objective and transparent manner before implementing it for the IPPs.
Accordingly, the State/Central Gencos have been requested to submit their EoI in the requisite format till 28 May’18.
Based upon the information provided by the Power Gencos and information from coal companies regarding availability of coal, feasibility of coal linkages would be examined and a proposed matrix would be placed to seek comments from stake holders (including CEA, Railways and SCCL) before finalizing the linkage rationalization for the Power Genco.
Tentative Timeline for Implementation of Rationalisation of Coal Linkages:
| Event | Date |
| Date of Publishing Notice Inviting EoI from State/Central Gencos | 21 May’18 |
| Last Date of Submission of EoI by State/Central Gencos | 28 May’18 |
| Date of Publishing provisional Rationalised Matrix for seeking comments of stake holders | 4 Jun’18 |
| Last Date for submitting comments on Rationalised Matrix by Stakeholders | 8 Jun’18 |
| Date of Publishing the final Rationalised Matrix | 11 Jun’18 |
| Last date of signing supplementary FSA by State/Central Gencos | 25 Jun’18 |
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