Coal giant bets on bonding rejig to reduce costs

Calcutta Indian coal The implementation of the rationalization of links, also called rationalization of sources, saved around Rs 3,770 million rupees in coal transport costs annually since 2015 in 58 thermal power stations (TPP) in the country. The rationalization of the linkage is the transfer of the linkage of the coal supply of a power plant from a remote source to the nearest source. This not only reduces the cost of transporting coal for the power plant but also reduces the transport distance that leads to improved supplies.

“The reduction in transportation costs also helps reduce the cost of power generation. Another benefit of the measure is the reduction in the response time of the carbon rakes that leads to increased availability of rakes, CIL officer said.

In 2014, an interministerial working group (IMTF) of the ministries of coal and power was formed to adopt a holistic view of the rationalization of coal ties. Initially, the working group identified 19 thermal power plants for link transfer. These plants belonged to state and central Gencos such as WBPDCL, DVC, DPL, Mahagenco, GSECL, NPTC and JV. Then, there was an exchange between NTPC and GSECL. The underlying objective of the exercise was to reduce the cost of unloading coal due to the reduction in the costs of transporting coal.

Based on the requests received from consumers, CIL also in subsequent years reshuffled and rationalized the sources of coal, coal company wise, to state/central Gencos with a view to optimize transportation cost and materialization taking into account availability of coal and logistics at a particular coal company

Later, according to the ministry's directive in May 2018, the rationalization of the links was also extended to independent power plants. A total of 58 TPPs benefit from the introduction of the rationalization of links with a total of 63 MT of coal that currently constitute the rationalized quantity.