Industry & Economy
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Coal
Govt may review coal linkages to cement, sponge iron cos
Ambarish Mukherjee
New Delhi
,
Sept. 29
The Government is contemplating a reassessment of existing coal linkage volumes to many core sector customers. This may lead to reduction in assured supplies to the companies based on their actual use pattern.
It would also curb the diversion of excess coal, which is sold by Coal India through approved linkages, to the black market.
According to sources, Coal India officials have pointed out that several companies, particularly in the cement and sponge iron sector, are diverting coal to the market instead of using it for the purpose it has been allotted.
Higher efficiency
Sources said that many companies in these two sectors have captive power plants for which they have separate coal linkages.
This linkage is over and above the coal assured to the main plant.
But many companies are actually generating the power through waste heat recycling leading to higher efficiencies and lower fuel consumption.
The objective of the reassessment would be to determine the actual coal requirement of the users and estimate how much power is generated through the waste heat recovered from the main plant.
Based on the data, new volumes may be fixed, sources said, adding that the plan, however, was still at a nascent stage.
In the long term the plan would lead to availability of more coal with Coal India, which would then be supplied to new actual users, sources said.
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