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New Methodology for Rationalisation of Coal Linkages aims at Optimal Utilization of Natural Resources

<p><span style="color:black"><span style="font-size:10.0pt">Transportation and Coal Linkages are one of the most common woes of Power Producers. In current situation PLF of country is plagued by inadequate logistic corridors. New methodology such introduced is anticipated to hedge Producers against probable uncertainties. IPPs having linkages through allotment route, should feast the opportunity to rationalize coal supplies, by tying pacts with the coal company that matches future coal production plan at an optimized transportation cost &amp; also availing other benefits.</span></span></p> <p><span style="color:black"><span style="font-size:10.0pt">As Fuel Supply Agreement (FSA) of the rationalized source from any coal company would be signed/implemented only after the appropriate Electricity Regulatory Commission and such regulated rationalisation of linkages is transparent, objective and creates a level playing field for IPPs in each domain, disputes arising will also be minimal.</span></span></p> <p><span style="color:black"><span style="font-size:10.0pt">Rationalized methodology proposed will certainly ease daily rakes requirements transported over long distances, which may be utilized for other sector. This will also reduce landed price of coal and will also lead to savings in the cost of power generated as well as coal transportation. The savings in cost will be passed on to the Discom/ consumers of power.</span></span></p>