Coal news and updates

Govt forms panel to expedite coal linkage rationalisation

The government is trying to rationalise coal linkages for various companies across the country on a priority basis, coal secretary Anil Swarup has said.

Swarup said KPMG has submitted a report on linkage rationalisation and the government has formed a committee to look into the linkage policy. The panel  will submit its report in two months. The government would also ask companies, whose plants are not operational, to surrender linkages so that it can be transferred to those companies who are fighting coal shortage.

Coal linkage rationalisation would save R600 crore for the exchequer annually.

He said while rationalising linkage was a priority, evacuation was another major problem for which the government has taken major initiatives to sort out.

The government has identified 50 railway projects for evacuating coal and would like to implement those in joint ventures, he said in an interactive session organised by the MCC Chamber of Commerce. “Improving rail infrastructure in the coal mining areas is an urgent need and we want to expedite projects on this account,” Swarup said, adding that Coal India (CIL) was unable to increase production for lack of evacuation facilities.

“Evacuation issues are impacting the coal production of CIl. Railway linkages are key to improve evacuation of coal from mines,” he said.

“Railways has the expertise, Coal India has funds and we are also open to joint ventures, floating SPVs (special purpose vehicles) to develop railway linkages,” he said.

CIL in its annual report for FY14 mentioned that its sales were constrained by non-availability of adequate railway infrastructure.

Source: The Financial Times