Proper coal linkages with power plants to help save Rs 1,114 cr

Finance Minister Arun Jaitley had earlier said that an exercise to rationalise coal linkages, which will optimise transport of coal and reduce cost of power, was under way.

hidden January 02, 2015 19:35:11 IST
Proper coal linkages with power plants to help save Rs 1,114 cr

New Delhi: Rationalisation of coal linkages with power plants would result in savings of about Rs 1,114 crore on account of transportation costs.

"Rationalisation of sources of coal...will result in decongestion of the railway network and improved materialisation of coal at the thermal plants," Coal India Ltd, director (Marketing) BK Saxena said during a workshop.

Proper coal linkages with power plants to help save Rs 1114 cr

Coal linkage with power plants to cut cost. Getty Images

"The whole exercise may lead to estimated savings in transportation costs to the tune of Rs 1,114 crore approximately," he added.

An added benefit would be offloading MCL's (Mahanadi Coalfields Ltd, a CIL subsidiary) 15 million tonnes of coal, which is presently overbooked with linkages, Saxena said while making a presentation on rationalisation of sources of the dry fuel that are achievable and could give savings immediately.

The basic criteria on identification of these proposals include proximity of the plants, availability of coal at different subsidiaries, consent of consumers for shifting of the sources, operational feasibility of the railway network and environment ministry stipulations.

Finance Minister Arun Jaitley had earlier said that an exercise to rationalise coal linkages, which will optimise transport of coal and reduce cost of power, was under way.

The government had earlier constituted an inter-ministerial task force to review the existing sources and consider feasibility for rationalisation of linkages with a view to reducing the transportation cost for power utilities, cement, steel and sponge iron sector.

PTI

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