Union government finalises the methodology for rationalisation of coal linkages for IPPs

The unio government has finalised the methodology for rationalisation of coal linkages for independent power producers (IPPs) based on the recommendations of the inter-ministerial task force. As per the new methodology, an IPP can procure coal from a company other than the one with which it has signed the contract by transferring the existing coal linkages to their nearest mines. The linkage rationalisation will be applicable to IPPs having linkages through the allotment route and the one-time process for the same will be jointly undertaken by Coal India Limited (CIL), Singareni Collieries Company Limited and the CEA in a transparent manner. This flexibility in coal linkage is expected to yield significant savings and ensure lower coal transportation costs for power plants.

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