What is coal linkage rationalization?

for Independent Power Producer (IPPs) Coal linkage rationalization shall be an exercise in which the coal finkage of a Thennal Power Plant (TPP) of an Independent Power Producer (PP) may be transferred from one Coal Company to another based on the coal availability and future coal production plan of the coal company.

What is bridge linkage coal?

`Bridge Linkage’ shall act like a short term linkage to bridge the gap between requirement of coal of a specified end use plant of Central and State PSUs and the start of production from the linked allotted coal mine/ block.

What is Shakti policy?

SHAKTI. 1. (Scheme for Harnessing and Allocating Koyala Transparently in. India) is a policy designated by the Union Government for the allocation of coal among thermal power plants in a transparent and objective manner.

What is Shakti scheme for coal?

SHAKTI, or Scheme for Harnessing Scheme for Harnessing and Allocating Koyala Transparently in India, was launched in 2018 to provide coal to stressed power units which lack coal supply.

What is meant by coal linkage policy?

What is coal linkage policy? Coal linkage policy is a central government designed guidelines for the allocation of coal among thermal power firms. The central government designated the Central Electricity Authority to design and issue methodology for coal linkage.

How do private power plants bid for coal linkage?

Private-owned independent power plants (IPPs) have to bid for the coal linkage. The basis of bidding would be the location of source of coal, quantity of coal, amount of power and delivery point of power they generate.

Is allocation of coal among power generating firms a good policy?

Since coal mining firms are public sector companies, allocation of coal among power generating firms becomes an important policy. Similarly, pricing of such allocated coal is also a vital factor.

Is coal’s availability adequate?

But coal’s availability is not adequate and international price is high compared to the domestic price. Inadequate quantity of domestic coal, rising imports and high price for imported coal necessitates government intervention while allocating the available coal among power producing firms.