"Through four rounds of coal linkage rationalization, which have encompassed 73 thermal power plants, a total of 92.16 million metric tons of coal have been rationalized. This initiative holds the potential for an annual cost savings of approximately

September 27 -- "The Ministry of Coal has introduced a policy initiative known as 'Coal Linkage Rationalization' with the aim of reducing the transportation distance of coal from mines to consumers. This strategic approach is designed to cut transportation costs and enhance the efficiency of coal-based power generation. Rationalizing coal linkages in the power sector has resulted in a decrease in transportation expenses from mines to power plants, ultimately leading to more efficient coal-based power generation. This initiative also alleviates the burden on transportation infrastructure, eases evacuation constraints, and lowers the overall cost of coal.

Initially, the rationalization of linkages for State and Central Public Sector Undertakings (PSUs) was implemented based on the recommendations of the Inter-Ministerial Task Force (IMTF), which was formed in June 2014. Subsequently, another IMTF was established in July 2017 to rationalize linkages for Independent Power Producers (IPPs). The methodology for rationalizing coal linkages for IPPs and private sector plants was also issued on May 15, 2018. In addition, an IMTF was constituted in October 2018 to explore the possibility of further optimizing coal linkages, including the potential swapping of imported coal destined for hinterland areas with domestic coal transported closer to coastal regions."

So far, four rounds of rationalization of linkage have taken place, covering 73 Thermal Power Plants (TPPs), out of which 58 belong to State/Central Gencos and 15 to IPPs. The rationalization of linkage has resulted in the rationalizing of total 92.16 million tonnes (MT) of coal, with annual potential saving of around Rs. 6420 crores.

As part of the Ministry of Coal's comprehensive strategy for the rationalization of coal linkages, Coal India Limited has taken a significant step by inviting Expression of Interest (E.O.I) from both Independent Power Producers (IPPs) and Generating Companies (Gencos). This visionary policy aims to substantially reduce transportation costs thereby curbing fuel expenses, delivering tangible benefits to consumers.

Through the Rationalization of Coal Linkage, Coal PSUs are not only optimizing operational efficiency but also driving down costs and fostering a more sustainable energy ecosystem. This policy demonstrates our commitment to balance economic growth along environmental sensitivity. The Ministry of Coal's innovative policy initiative continues to shape a future where efficiency, affordability, and environmental responsibility harmonize seamlessly.