In order to reduce the cost of electricity generation the Indian government has allowed the power utilities of the central government and state governments to have flexibility in utilization of coal by swapping coal supplies.
Early this month, the Central Electricity Authority (CEA) issued the methodology for swapping coal linkages for efficient usage and reduction in transportation charges.
Under this, coal linkages from state-run Coal India Limited and Singareni Collieries Company Limited will get transferred from inefficient power stations to efficient ones and from plants situated away from coal mines to pitheads to reduce the coal transportation cost, according to CEA guidelines.
At present, there are several power plants running at a very low plant load factor but the coal linkages allotted to them remain the same while some of the very efficient plants are facing a severe shortage of coal, a CEA official said.
The new scheme will help end this anomaly along with bringing down the cost of power.
He added that once the scheme is successfully implemented by government-owned utilities, it will be extended to the private sector as well.
The methodology for transferring or swapping of coal linkages with private power plants will be drawn out soon and there is a possibility of imported coal-based plants being included in the scheme, the CEA official said.
