A new coal linkage policy has been approved by the Cabinet Committee on Economic Affairs (CCEA) to ensure sufficient supply of coal to power plants through reverse auction.

New Coal Linkage Policy: Key Facts

1. The new coal linkage policy will ensure organized fuel supplies to the power plants.
2. Initiatives of the government and prevalent market conditions has helped bring down the dry fuel prices and has improved the domestic production.
3. This policy aims to bring in a proper mechanism to provide coal linkages to power plants at inexpensive rates.
4. The new policy will address dry fuel sourcing issue and will ensure dry fuel’s proper sourcing by the power plants.

Brief About Coal Linkage Policy:

Coal linkage policy is a union government-designated policy for proper allocation of coal among country’s thermal power plants. This was a much needed step taken by the government seeing insufficient domestic coal availability and the rising prices of the imported coal. Government has taken actions for sourcing of coal fuel before an alarming situation and this will benefit the nation in long run.

Under this policy the union government rationally allocates coal among the nation’s power plants. This has been a wonderful initiative of the nation to boost provide coal to power plants and manage the fuel resource, so the nation does not run short of it.

Need Coal Linkage Policy:

1. The coal linkage policy is critical for proper sourcing of coal to power plants.
2. It is necessary for fuel distribution because coal producing companies come under public sector.
3. Coal linkage policy was much needed to control increasing price of coal and to make this fuel available to power plants of the country.
4. This policy is an important step as the government designates it for allocating coal among country’s thermal power plants.