Lok Sabha Question No. 864 (UNSTARRED), answered on 2015-12-03
Subject: Liberalised Coal Linkages
Ministry: COAL
Asked by: VINOD KUMAR BOIANAPALLI, KOTHA PRABHAKAR REDDY, PRAHLAD SINGH PATEL

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO.864 TO BE ANSWERED ON 03.12.2015

## Liberalised Coal Linkages

## 864 . SHRI B. VINOD KUMAR;

SHRI PRABHAKAR REDDY KOTHA; SHRI PRAHLAD SINGH PATEL:

Will the Minister of COAL be pleased to state:

- (a) whether it is proposed to liberalise coal linkages with intra-companies enabling them to swap coal linkages within same companies;
- (b) if so, the details thereof;
- (c) whether the Government is also contemplating on setting up of large scale coal washeries to bring down pollution levels; and
- (d) if so, the details thereof?

## ANSWER

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

## (SHRI PIYUSH GOYAL )

(a)&(b): The provision of allowing inter power plant transfer of coal  under coal linkages from  one  Power  Plant  to  another  is  already  in  place.  Such  dispensation  is  allowed subject to the following conditions:

- a)  Transfer of coal is allowed only between the power plants  wholly owned by the Purchaser  or  its  wholly  owned  subsidiary.  No  transfer  of  coal  is  allowed  for  a Joint  Venture  (JV)  company  of  the  Purchaser.  The  supply  of  coal,  for  all commercial purpose under the Fuel Supply Agreement (FSA) remains unchanged and on account of the original Power Plant.
- b)  Both  the  Power  Plants  should  have  executed  FSA  in  the  modified  FSA  Model applicable  for  new  power  plants  and  not  having  any  supplies  linked  to  coal

blocks.  In  case  of  Independent  Power  Producers  (IPPs)  both  the  plants  must have valid long term Power Purchase Agreements (PPAs) with DISCOMS.

- c)  In  no case the transferred quantity to a plant together with the quantity supplied under the applicable FSA exceeds the Annual Contracted Quantity (ACQ) of the Transferee Plant for a particular year which is proportional to the long term PPA with DISCOMS.
- d)  Transfer of coal is not allowed to those plants who are allotted coal blocks under this arrangement.
- e)  In case of change in ownership and no environmental clearance of the plant this facility stands withdrawn, and
- f) Penalty/Incentive under this arrangement is considered in terms of (a) above.

(c)&(d): Coal India Limited (CIL) has planned to set up 15 new washeries. Out of  these, 9 washeries are planned for non- coking coal with capacity of 94 Million Tonne Per Year ( MTY) and 6 coking coal washeries of capacity 18.60MTY.

The details of the proposed washeries are as follows:

| Sl No.   | Subsidiary Company   | Name of the Washery   |   Capacity (MTY) |
|----------|----------------------|-----------------------|------------------|
| 1        | BCCL                 | Madhuband             |              5   |
| 2        | BCCL                 | Patherdih             |              5   |
| 3        | BCCL                 | Dahibari              |              1.6 |
| 4        | BCCL                 | Patherdih             |              2.5 |
| 5        | BCCL                 | Dugda                 |              2.5 |
| 6        | BCCL                 | Bhojudih              |              2   |
| 7        | MCL                  | Hingula               |             10   |
| 8        | MCL                  | Jagannath             |             10   |
| 9        | MCL                  | Basundhara            |             10   |
| 10       | MCL                  | IbValley              |             10   |
| 11       | CCL                  | Ashoka                |             10   |
| 12       | CCL                  | Konar                 |              7   |
| 13       | CCL                  | Karo                  |              7   |
| 14       | SECL                 | Baroud                |              5   |
| 15       | SECL                 | Kusmunda              |             25   |
| Total    | Total                | Total                 |            112.6 |

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