Kolkata: Coal India’s implementation of linkage rationalisation, also called source rationalisation, saved around Rs 3,770 crore in coal transportation costs annually since 2015 at 58 thermal power plants (TPPs) of the country. Linkage rationalization is transfer of coal supply linkage of a power plant from a far-end source to the nearer source. This not only reduces coal transportation cost for the power plant but also cuts the transportation distance leading to enhanced supplies.
“Reduction in transport costs helps in lowering the power generation cost as well. Another benefit of the move is the cut in turnaround time of coal rakes leading to increased rake availability,” a CIL official said.
An inter-ministerial task force (IMTF) of the ministries of coal and power was constituted in 2014 to take a holistic view for rationalization of coal linkages. Initially, 19 thermal power plants were identified by the task force for linkage transfer.
