Liberalised Coal Linkages

By | December 3, 2015
(Last Updated On: December 3, 2015)

Liberalised Coal Linkages

                        The provision of allowing inter power plant transfer of coal under coal linkages  fromone Power Plant to another is already in place. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabhatoday. Such dispensation is allowed subject to the following conditions:

  1. a) Transfer of coal is allowed only between the power plants wholly owned by the Purchaser or its wholly owned subsidiary. No transfer of coal is allowed for a Joint Venture (JV) company of the Purchaser. The supply of coal, for all commercial purpose under the Fuel Supply Agreement (FSA) remains unchanged and on account of the original Power Plant.
  2. b) Both the Power Plants should have executed FSA in the modified FSA Model applicable for new power plants and not having any supplies linked to coal blocks. In case of Independent Power Producers (IPPs) both the plants must have valid long term Power Purchase Agreements (PPAs) with DISCOMS.
  3. c) In no case the transferred quantity to a plant together with the quantity supplied under the applicable FSA exceeds the Annual Contracted Quantity (ACQ) of the Transferee Plant for a particular year which is proportional to the long term PPA with DISCOMS.
  4. d) Transfer of coal is not allowed to those plants who are allotted coal blocks under this arrangement.
  5. e) In case of change in ownership and no environmental clearance of the plant this facility stands withdrawn, and
  6. f) Penalty/Incentive under this arrangement is considered in terms of (a) above.

The Minister further stated that Coal India Limited (CIL) has planned to set up 15 newwasheries. Out of these, 9 washeries are planned for non- coking coal with capacity of 94 MillionTonne Per Year ( MTY) and 6 coking coal washeries of capacity 18.60MTY.

The details of the proposed washeries are as follows:


Sl No.Subsidiary


Name of the


Capacity (MTY)

Source :Press  Information Bureau, Govt of India ,Ministry of Coal 03-December, 2015

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