Economy

Ministry approves 'bridge linkages' for PSU coal mine allottees

Debabrata Das New Delhi | Updated on February 09, 2016

The Ministry of Coal has approved a proposal to grant a short-term coal linkage to central and state public sector units which have been allotted Schedule III coal mines.

Under the Coal Mines (Special Provisions) Act, Schedule III coal mines are those which require some work or clearances before they start to produce.

The short-term linkages or ‘bridge linkage’ will be given to both power and non-power sector public sector units. The bridge linkage will fill the gap of coal requirement of the specified end use plant till the allotted coal mine starts production.

“The ‘bridge linkage’ may be granted for a fixed period of three years from the date of allotment of the coal mine. No further extension thereafter will be entertained under normal circumstances. The shorter duration shall act as an incentive for allottees to expedite production from the coal mines,” a note from the Coal Ministry said.

Every plant, which wants a bridge linkage, will need to apply to the Ministry of Coal. The request will be considered by the Standing Linkage Committee (Long Term) and thereafter Coal India or Singareni Collieries Company Ltd shall decide the grate of coal and source of coal.

About 21 Schedule III coal mines were allotted to 18 central and state public sector units.

Published on February 09, 2016

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