Rationalization of Coal Linkage Scheme

The Government of India is to rationalize the coal linkages in the country. This is to be done in order to reduce the load on transportation infrastructure and also to ease evacuation constraints.

Highlights

The Government of India has rationalized the coal linkages in order to reduce the distances of coal transportation. Unlike the previous rationalizations, the current exercise involves power and non-regulated sector as well. The move is aimed to reduce the load on transportation infrastructure and ease evacuation constraints.

The scheme will transfer coal in terms of gross Calorific Value and is to be implemented only for non-coking coal.

What is Rationalization of Coal Linkages?

The Rationalization of coal linkages is the transfer of coal supply source of a plant from a far mine to a nearer one.

Background

The rigidity in coal supply in India resulted in ferrying coal from long distances. This increased costs and burden on Indian Railways. The Coal Linkage Rationalization scheme was launched to untangle the situation.

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