Govt comes out with methodology for rationalisation of coal linkages

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New Delhi: The federal government on Tuesday stated that fuel linkages from coal companies have been rationalised to scale back the gap in transportation of coal from the mines to customers. The transfer is geared toward lowering the load on the transportation infrastructure and easing the evacuation constraints.

“In contrast to the previous rationalisation workout routines, the current methodology on linkage rationalisation, covers the facility in addition to non-regulated sector (NRS), for all sorts of customers,” the coal ministry stated in an announcement.

The previous rationalisation workout routines had been applied just for the facility sector and have resulted into rationalisation of coal motion of 63.12 million tonnes (MT) of coal with annual potential financial savings of round Rs 3,769 crore.

The scheme envisages switch of coal amount by way of gross Calorific Worth (GCV) equivalence and is relevant for non-coking coal solely.

The association shall be allowed solely inside the identical sector.

“Participation within the scheme shall be voluntary and association between the events rationalising/swapping coal by means of rail and/or sea mode shall be bilateral,” it stated.

Coal India (CIL) shall be the nodal company for conducting the method of linkage rationalisation.

A committee shall oversee the implementation of the scheme and deal with key points within the implementation.

The prepared individuals / customers shall register on the digital platform for rationalisation and submit the requisite info.

The financial savings accrued within the course of shall be transferred to Indian Railways/discoms.

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