There is no proposal with the Government to abolish the Standing Linkage Committee (Long Term) [SLC(LT)]. The procedure followed for allocation of coal is as below:

1. A policy on 'Auction of Linkages of Non-Regulated Sector' was issued on 15.02.2016 vide letter No.23011/51/2015-CPD (Pt-I). The new coal linkages shall be allocated through a transparent auction process. The earlier system was essentially based on 'first come, first served', subject to fulfillment of certain criteria. Thus there was a need to make the allocation system more objective and transparent.

(2) A new linkage policy for power sector called ‘SHAKTI (Scheme for Harnessing and Allocating Koyla (Coal) Transparently in India)’ has been formulated and issued vide letter No. 23011/15/2016-CPD/CLD dated 22.05.2017. The allotment of linkages to Central/State Public Sector Undertakings (PSUs) and linkage through auction process to Independent Power Producers (IPPs) are in terms of the various provisions of this policy. The linkages are based on the recommendations of Ministry of Power.

(3) The bridge linkages are allotted to specified end use plants of Central/State PSUs which have been allotted Schedule-III coal mines under the Coal Mines (Special Provisions) Act, 2015 and coal blocks allotted under the Mines and Minerals (Development and Regulation) Act 1957. The recommendations for the bridge linkage are made by the SLC (LT).

(4) The consumers of small, medium and other sectors who have coal requirement up to 10,000 tonnes/year shall be eligible to obtain coal from the State Nominated Agencies (SNA), as per the provisions of New Coal Distribution Policy (NCDP), 2007.

(5) As per the provisions of NCDP, 2007, around 10% of estimated annual production of CIL would initially be offered under e-auction. CIL offers coal through spot auction, special forward e-auction for power sector and exclusive e-auction for Non-Regulated sector to meet the requirements of different consumers of the economy.

This information was given by the Minister of Coal & Railways, Shri Piyush Goyal in a written reply to a question in Lok Sabha today.

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SVS/MKV