Lok Sabha Question No. 406 (UNSTARRED), answered on 2018-12-12
Subject: Coal Linkage
Ministry: COAL
Asked by: CHANDRA PRAKASH JOSHI, NARANBHAI KACHHADIA, SUMEDHANAND SARASWATI, BIDYUT BARAN MAHATO, RAMDAS CHANDRABHANJI TADAS

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.406

## TO BE ANSWERED ON 12.12.2018

## Coal Linkage

406.   SHRI CHANDRA PRAKASH JOSHI:

SHRI NARANBHAI KACHHADIYA:

SHRI SUMEDHANAND SARSWATI:

SHRI BIDYUT BARAN MAHATO:

SHRI RAMDAS C. TADAS:

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

- (a) the steps taken by the Government at present to rationalise coal linkage;
- (b)  whether  CIL  has  streamlined  the  coal  linkage  sources  of  public  sector power plants at present;
- (c) if so, the benefit derived by the Government due to it; and
- (d) the cost incurred in washing coal in public sector power plants at present including the details thereof State-wise, plant-wise for the past three years?

## ANSWER

## MINISTER OF  RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

(a): Rationalization of Coal Linkage: An Inter-Ministerial Task Force (IMTF) was  constituted  in  June,  2014  to  undertake  a  comprehensive  review  of existing  sources  of  coal  with  a  view  to  optimize  transportation  cost  and materialization under the given technical constraints. The linkage rationalization for State/Central PSUs was implemented initially, based on IMTF recommendation and carried forward by Coal India Limited (CIL)/Singareni Collieries Company Limited(SCCL) based on coal availability and requests of public sector Power Plants. Policy for Linkage rationalization for Independent Power Producers (IPPs) has been issued on 15.05.2018.

- (b) & (c ): CIL has rationalized sources (subsidiary company-wise) based on the  request  of  public  sector  power  plants  with  a  view  to  optimize  the transportation cost and materialization taking into account coal availability and logistics. Overall movement rationalization of 61.08 Million Tonnes (MT) of coal has taken place with annual potential savings of Rs. 3,651 Crore.
- (d )  The average processing cost incurred in washing coal by CIL for public sector  power  plants  at  present  including  the  details  thereof  State-wise, plant-wise for the past three years is as under:

## CIL:

| Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   |
|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Subsidiary - State                  | Non-coking Coal washeries           | 2017-18                             | 2016-17                             | 2015- 16                            |
| Jharkhand                           | CCL                                 | 307.15                              | 175.62                              | 157.21                              |
| Uttar Pradesh                       | NCL, Bina Deshaling Plant           | 76.88                               | 24.63                               | 43.98                               |

## SCCL:

| Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   | Cost of washing (in Rs per tonne)   |
|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Company State                       | Coal washeries                      | 2017-18                             | 2016-17                             | 2015-16                             |
| SCCL- Telangana                     | MNG                                 | 280.40                              | 333.43                              | 258.63                              |
| SCCL- Telangana                     | RG II                               | 290.70                              | 270.19                              | -                                   |
| SCCL- Telangana                     | RKP                                 | 186.98                              | 150.93                              | 163.51                              |