Lok Sabha Question No. 1514 (UNSTARRED), answered on 2019-11-27
Subject: Abolition of Coal Linkage Committee
Ministry: COAL
Asked by: Komati Reddy Venkat Reddy, Y. S. Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

UNSTARRED QUESTION NO.1514

TO BE ANSWERED ON 27.11.2019

## Abolition of Coal Linkage Committee

## 1514.SHRI KOMATI REDDY VENKAT REDDY: SHRI Y.S. AVINASH REDDY:

## Will the Minister of COAL be pleased to state:

- (a) whether  the  Government  is  planning  to  abolish  the  coal  linkage committees governing the distribution of coal to the companies;
- (b) if so, the details thereof and the reasons therefor; and
- (c) the details of the method being adopted by the ministry for allocation of coal in the absence of coal linkage committees?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

## (SHRI PRALHAD JOSHI)

- (a) to (c): There is no proposal with the Government to abolish the Standing Linkage Committee (Long Term) [SLC(LT)]. However, the present procedure followed for allocation of coal is as below:
- (i)   A  policy  for  Auction  of  Coal  Linkages  to  Non-Regulated  Sector  was introduced in February 2016. In this policy, it has been stipulated that all allocation  of  linkages/Letter  of  Assurance  for  non-regulated  sector  viz. Cement,  Steel/Sponge  Iron,  Aluminum  and  others  {excluding  Fertilizer (urea sector)}, including their Captive Power plants (CPPs), shall hence forth be auction based. There is no renewal of existing Fuel Supply Agreement (FSA)  except  FSAs  of  Central  Public  Sector  Enterprises  (CPSEs)  and Fertilizer (Urea).
- (ii)  A Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India  (SHAKTI),  2017  was  introduced  in  May  2017  and  subsequent amendment  dated  25.03.2019,  in  which  coal  linkages  are  allocated  to thermal  power  plants,  on  nomination  basis  to  the  Central/State  sector power  plants  and  through  bidding/auction  process  to  power  plants  in private sector. Under SHAKTI, coal linkages are granted on notified price for power  producers  having  already  concluded  long  term  Power  Purchase Agreement (PPA), wherein bidder bids for discount on tariff. Coal linkages are also made available to States for competitive tariff based biding of PPAs.

(iii) The bridge linkages are allotted to specified end use plants of Central/State PSUs which have been allotted Schedule-III coal mines under the Coal Mines (Special Provisions) Act, 2015 and coal blocks allotted under the  Mines  and  Minerals  (Development  and  Regulation)  Act  1957.  The recommendations for the bridge linkage are made by the Standing Linkage

Committee (Long Term). (iv)  The  consumers  of  small,  medium  and  other  sectors  who  have  coal requirement up to 10,000 tonnes/year shall be eligible to obtain coal from the  State  Nominated  Agencies  (SNAs),  as  per  the  provisions  of  New  Coal Distribution Policy (NCDP), 2007. (v) As per the provisions of NCDP, 2007, Coal India Limited (CIL) offers coal under e-auction. CIL offers coal through spot e-auction, special forward eauction for power sector and exclusive e-auction for Non-Regulated sector to meet the requirements of different consumers of the economy.

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