PMO asks Coal Ministry to increase fuel linkages to sectors

To ensure availability of fuel to industries, the Prime Minister's Office has asked the Coal Ministry to increase coal linkages to all sectors, including power.

"The Prime Minister Office had recently asked the Coal Ministry to increase coal linkages to all the sectors, including power," an official said.

The linkages of coal demand is primarily done with the objective of planning of coal supplies to consuming industries.

The direction has come at a time when the government is considering coal linkage auction and has sought comments from stakeholders on the draft auction methodology.

"In order to conduct the auction of the coal linkages to non-regulated sector which covers cement, sponge iron, captive power and others through competitive bidding this ministry has prepared a draft auction methodology and also an approach paper has been prepared for public consultation," Coal Minister Piyush Goyal had informed Parliament last week.

The minister had said that in June "the members of the public and stakeholders concerned were requested to submit their comments/views on the draft auction methodology. The policy for linkage auction is under consideration of the Ministry".

He further said that an Inter-Ministerial Committee (IMC) was set up in January to consider various models, including auctioning of coal linkages/LoAs (Letter of Assurances) through competitive bidding as the selection process and to recommend the optimal structure that would meet the requirements of all the stakeholders.