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Global consulting firm KPMG will submit the draft report on coal rationalisation to the government tomorrrow.
Coal linkage rationalisation, which is aimed at linking power plants to the nearest mines, is likely to bring financial benefit of about Rs 700 crore to the sector.
According to an official, the report will be submitted to the Power and Coal Minister Piyush Goyal tomorrow.
The move will also help in overcoming power shortages which are hampering generation at some thermal plants.
According to the latest data by Central Electricity Authority (CEA), 60 coal-based power plants have critical fuel stock position with less than seven days of raw material.
Also, as part of the government's plan to modernise old power plants of about 32,000 MW capacity, coal linkages to these plants will be rationalised.
The government has also allowed automatic transfer of linkages from old and inefficient plants to ultra-modern supercritical plants in order to maximise power generation from the same amount of coal.
It has also allowed the Gujarat government to swap the quantity of coal it receives from coal mines in Chhattisgarh for its plants with NTPC's imported coal.
State-run NTPC imports coal through Gujarat ports for its thermal plants in Chhattisgarh.
Meanwhile, public sector firm Coal India will spend Rs 5,000 crore to purchase 250 rail rakes for faster evacuation of coal from mines.
The proposed move will help the government in bringing about a transformative change in the power sector and ensure affordable 24x7 power for all homes, industrial and commercial establishments and adequate power for farms.
