Coal India on Tuesday said at least 58 power thermal plants in the country have been able to save Rs 3,770 crore annually in coal transportation costs after the implementation of coal linkage rationalisation.

The process of rationalisation involved transfer of coal supply linkage from a distant source to the nearer source, thus cutting down on coal transportation cost for the power plant and improving offtake.

It also helps to lower turnaround time for railway rakes carrying coal and increases availability.

CIL sources said that initially around 19 thermal power plants were identified by an inter-ministerial task force of the coal and power ministries constituted in 2014 for linkage rationalisation.

Production target

The government has set an all India production target of 810 million tonnes in 2019-20. This includes 660 mt by Coal India, 67 mt by Singareni Collieries and the remaining from captive and other sources.

Production in 2018-19 was 730.35 mt.