Government is likely to approve a new coal linkage policy soon for ensuring adequate supply of the fuel to power plants. Companies which do not have coal linkages at present, would benefit immensely from the new policy as they would get domestic fuel supplies at competitive rates through reverse auction route
The proposal on the scheme called ‘SHAKTI’ to provide coal linkages to power plants would be taken up in the Cabinet meeting to be scheduled sometime in next week. The new coal linkage policy for power plants would help producers ensure fuel supplies in an organised manner.
The government’s initiatives as well as international market conditions have helped bring down price of the dry fuel and boost domestic production. But a mechanism is required for providing coal linkages to power plants at competitive rates. The new fuel linkage policy would address this concern and put in place a proper mechanism for sourcing of dry fuel by the power plants as per their schedules.
Source – Economictimes
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