Coal Min may revisit its tapering linkage policy
01/09/2014 07:17
The Coal Ministry of India is expected to revisit the policy on tapering linkages which may be done after the apex court gives its judgement that all coal block allocations made since 1993 till 2010 have been done in an illegal manner, as per ET report. Tapering linkages are interim supply arrangement made for power projects where production from linked captive coal blocks is delayed. The source close to the development said that basic principle behind providing tapering linkage includes incentivising faster production of coal from mines. According to the present policy, 75 per cent of the normative quantity is supplied to the end-use plant (EUP) in the first year; 50 per cent, in the second year and 25 per cent in the third year. No supplies are allowed after the third year.
01/09/2014 07:17
The Coal Ministry of India is expected to revisit the policy on tapering linkages which may be done after the apex court gives its judgement that all coal block allocations made since 1993 till 2010 have been done in an illegal manner, as per ET report. Tapering linkages are interim supply arrangement made for power projects where production from linked captive coal blocks is delayed. The source close to the development said that basic principle behind providing tapering linkage includes incentivising faster production of coal from mines. According to the present policy, 75 per cent of the normative quantity is supplied to the end-use plant (EUP) in the first year; 50 per cent, in the second year and 25 per cent in the third year. No supplies are allowed after the third year.
