New Delhi | Sep 26, 2016: An inter-ministerial panel has recommended short-term linkage coal linkage from Coal India to two units of state-run aluminium maker Nalco's captive power plant in Odisha.

"In view of the recommendation of Ministry of Mines and confirmation of allotment of coal block to specified end use plants, the Standing Linkage Committee (on coal linkage) recently recommended the grant of bridge link age from Coal India (CIL) to 2x120 mw CPP (captive power plant) unit numbers 9 & 10 of Nalco," an official said.

National Aluminium Company Ltd (Nalco) had submitted an application in June for grant of bridge linkage. In its application, the company had stated that it was earlier allotted tapering coal linkage through letter of assurance route in 2008 for both the units. The units were commissioned and put into operation in 2009 and 2010, the official said.

"Based on the tapering linkage policy, the same was supplied to these units till 2011 and thereafter the same was stopped," the official added.

Earlier in the year, the government had said that Coal India will provide short-term linkages to the end-use plants of those central and state PSUs, both in power and non-power sector, whose coal blocks could not begin production.

The development came after government approved allocation of coal linkages to non-regulated sectors such as steel and cement through the auction route.

The government had also said that the Bridge Linkage to be granted for 3 years will act like a short-term linkage to bridge the gap between requirement of coal of a specified end use plant of central and state PSUs and start of production from the linked allotted coal mine.

(Source: http://timesofindia.indiatimes.com/)