Power Ministry wants coal swap among units of same promoter
Rakesh Kumar Kubde
October 29th, 2012

The Power Ministry wants Coal India to allow power plants run by the same promoter to swap coal among the plants.

This means a company having projects at multiple locations is allowed to transfer or swap allocated domestic coal linkages amongst its own plants.

For instance, a private company which operates two units – one in Uttar Pradesh (with coal allocation from Eastern Coalfields Ltd) and another in Madhya Pradesh (with allocation from Northern Coalfields Ltd) – in order to cut transportation cost and time, can swap supplies.

The power plant in UP can buy from its nearest coal field and similarly the unit in Madhya Pradesh could source it from the mine that is near to the station.

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