In a major decision that will go a long way in adding to the speedy exploitation of coal blocks in the country, the Cabinet has given a go-ahead signal that requires private sector power companies to bid for coal linkages. The approved new policy for coal linkages will allow all long-term linkages of individual State government-owned power generating stations to be clubbed and assigned to the respective States or their nominated agencies. In this connection, an auction will be held among the competing private plants, where the source of coal, quality of coal and quantum of power and delivery point for the power shall be indicated up front. Likewise, the Central government power generating stations, the coal linkage will be assigned to the company that owns the station after which both State and Central government power generating companies can then choose to allot the coal linkages among their generating stations.
