Jindal Steel and Power Ltd (JSPL) has secured Long term coal linkage in the recently concluded e-auction under captive power plants sub-sector. The coal linkage will provide 5,11,000 MT coal annually for a 5-year duration to its captive power plants.
JSPL is an Indian industry with presence in steel, power, mining and infrastructure sector. The company operates captive power plant at Raigarh (354 MW) and Dongamahua 540 MW (4X135 MW) both in Chhattisgarh; along with 810 MW plant located at Angul, Odisha.
Earlier in Aug’16, JSPL had won long term coal linkage of 1.18 MnT per annum for its captive plants at Dongamahua and Raigarh for a period of 5 years.
The coal linkages will ensure steady supply of coal at its Captive plant and to enhance operational efficiency at the newly commissioned 6 MT steel plant at Angul and its Raigarh Steel plant.
Significance of Coal Linkage:
Coal Linkage refers to reservation of a certain part of coal produced at a location by a specific company for specific use. Indian Government conducts e-auctions for coal linkages under various sub sectors (power, cement and sponge iron).
Coal Linkages ensure uninterrupted supply of coal and are even more cost efficient than coal procured through spot e-auctions for coal sales.
Since 2016, JSPL has secured coal linkages close to 2.3 MnT per annum under various sub-sectors for 5-year lifetime, according to the statement released by the company.
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