Lok Sabha Question No. 2080 (UNSTARRED), answered on 2016-03-10
Subject: Rationalisation of Sources of Coal
Ministry: COAL
Asked by: CHANDRAKANT RAGHUNATH PATIL

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO.2080 TO BE ANSWERED ON 10.03.2016

## 'Rationalisation of Sources of Coal'

## 2080.  SHRI  C.R. Patil:

Will the Minister of COAL be pleased to state:

- (a) whether  the  new  Inter-Ministerial  Task  Force  on  Rationalisation  of  sources  of coal constituted by the Government in June, 2014 has submitted any recommendation to the Government;
- (b) if so, the details thereof ;
- (c) whether  the  views  of  State  Government's/State  Power  Utilities  have  been obtained by the new Task Force; and
- (d) if  so,  the  details  thereof  andthe  latest  status  on  the  review  of  rationalisation  of linkages for coal in respect of power utilities ?

## A  N  S  W  E  R

## MINISTER OF STATE (I/C) IN THE MINISTRY OF COAL, POWER AND NEW & RENEWABLE ENERGY

## ( SHRI PIYUSH GOYAL )

(a)&(b) : Yes, Madam.  The new Inter-Ministerial Task Force (IMTF) constituted by the Government in June, 2014 has submitted its Report to the Government recommending  a  three-step approach. The  recommendations  inter-alia include rationalization  of  linkage  sources  for  19  Power  Utilities  (PUs)  in  StageI by  swapping linkage  coal  between  different  coal  companies  to  optimize  distances  and  maximizing despatches of coal.

The Task Force recommended rationalization of six swap sets of PUs in StageII , as listed below :-

|   S. No. | State         | ParticipatingCompanies   |
|----------|---------------|--------------------------|
|        1 | Tamil Nadu    | TANGEDCO & NTPC          |
|        2 | Gujarat       | GSECL & NTPC             |
|        3 | Maharahstra   | MAHAGENCO, NTPC & NSPCL  |
|        4 | Rajasthan     | RRVUNL & NTPC            |
|        5 | Punjab and UP | PSPCL, DVC and UPRVUNL   |
|        6 | Haryana       | HPGCL, DVC and APCLP     |

In  StageIII, a  stepwise  approach  to  achieve  further  rationalization  has  been recommended by IMTF by identification of clusters which would result in net reduction of the overall costs, and can be effected with consent of the Gencos/States.

(c)&(d): IMTF had obtained views of the State Governments/State Power Utilities in the meetings held from time to time and views/inputs expressed by them were taken into consideration before finalization of the report. As per the status of implementation of recommendations of  IMTF,  Coal  India  Limited(CIL)has  executed  revised  Fuel  Supply Agreements (FSAs) with 17 TPPs in respect of Stage I rationalisations.This has resulted in  movement  rationalization  of  24.6  Million  Tonnes  (MT)  coal  and  annual  savings  of Rs.913  Crore(approximately)  of  recurring  transportation  cost.  In  Stage  II,  one  set  of swaps has been implemented resulting in movement rationalization of 1.3 MT coal and potential  annual  savings  of  Rs.  458  Crore  of  transportation  cost.  Overall,  movement rationalization  of  25.9  MT  coal  has  taken  place  with  potential  annual  savings  of  Rs. 1,371 Crore of transportation cost.

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