Cabinet allows flexibility in utilisation of domestic coal

The cabinet has allowed flexibility in the utilisation of domestic coal. Long-term coal linkages of individual state generating stations and individual central generating stations will be clubbed and assigned to states or the state-nominated agency and the central sector company operating the plant respectively. Meanwhile, the use of coal in state/central generating plants will be decided on the basis of plant efficiency, cost of coal transportation, transmission charges as well as the overall cost of power supply. Further, in case the coal assigned to the state is allotted to private generating stations, power from the substituted coal would be procured through bidding among the competing private sector plants. The Central Electricity Authority will issue the methodology for implementing the framework.

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