“Inter-Ministerial Task Force” (IMTF) set up to Rationalization of Coal Linkages

Ministry of Coal (MoC) had constituted an Inter-Ministerial Task Force (IMTF) on 25.06.2010 to review the existing sources and consider feasibility for rationalization of linkages from these sources with a view to reduce the transportation cost for Power Utilities, Cement, Steel & Sponge Iron sector. The major recommendations of the Task Force, including those relating to Gujarat, are as under :

(i) Acceptance of the recommendations of the Functional Directors of Coal India Limited in respect of rationalization of existing sources in respect of applications received from Captive Power Plants (8 applications received by CIL and rationalization recommended for 7 cases), Sponge Iron Plants (21 applications received by CIL and rationalization recommended for 4 cases) and Cement Plants (2 applications received by CIL and both recommended).

(ii) Rationalization of coal supplies for Sanjay Gandhi and Satpura Thermal Power Plant of Madhya Pradesh Power Generation Company Limited (MPPGCL).

(iii) Reduction in quantity allocated to Gujarat State Electricity Corporation Limited (GSECL) from Korea Rewa fields of C/D grade coal and proportionate increase in Korba fields of South Eastern Coalfields Limited (SECL) by swapping quantities of MPPGCL

(iv) Rationalization of sources for Panipat and Rajiv Gandhi Thermal Power Station of Haryana Power Generation Company Limited, Mejia and Koderma Thermal power Stations of Damodar Valley Corporation and Santhaldih, Kolaghat, Sagardighi and Bakreshwar Thermal Power Stations of West Bengal Power Development Corporation Limited.

(v) Reduction in coal allocation from Mahanadi Coalfields Limited (MCL) and enhancement in coal allocation from Eastern Coalfields Limited (ECL) for the power plants of Tamil Nadu Electricity Board.

The approved recommendations of the task force were sent to Coal India Limited (CIL). CIL/coal companies have implemented the recommendations pertaining to rationalization of sources of consumers of Captive Power Plants, Sponge Iron and Cement Plants. As regards rationalization of sources of power utilities, the Task Force’s recommendations are all inter-linked and could be implemented only with the consent of all the consumers.  The same could not be implemented as the consumers concerned did not agree to the revised arrangement.

To undertake an optimization exercise again, Ministry of Coal has constituted a new “Inter-Ministerial Task Force” (IMTF) on 13.06.2014 to review rationalization of linkages.