Govt directs CIL to rationalise coal supply sources

New Delhi : The government has directed Coal India (CIL) to rejig the sources of coal it supplies to state-run utilities for power generation by reallocating resources on the basis of their proximity to generation units, thereby bringing down transport costs and easing pressure on tariffs.

The directive came on the basis of a recommendation made by an inter-ministerial task force set up by the Coal Ministry to look into the possibility of reducing the transport costs for coal sourced by generation units and assumes significance in view of spiralling international prices of the dry fuel amid a clamour by private companies for tariff hikes.

In addition, CIL has been asked by the Coal Ministry to reshuffle the sources of coal it supplies to certain steel, cement and sponge iron plants with the same motive of reducing transport fees and input costs.