An Inter-Ministerial Task Force (IMTF) was constituted in June, 2014 to undertake a comprehensive review of existing sources of coal with a view to optimize transportation cost and materialization under the given technical constraints. The linkage rationalization for State and Central PSUs was implemented initially, based on IMTF recommendation and carried forward by Coal India Limited (CIL) / Singareni Collieries Company Limited(SCCL) based on coal availability and requests of public sector Power Plants.
Policy for Linkage rationalization for Independent Power Producers (IPPs) has been issued on 15 May, 2018.
CIL has rationalized sources (subsidiary company-wise) based on the request of public sector power plants with a view to optimize the transportation cost and materialization taking into account coal availability and logistics. Overall movement rationalization of 61.08 Million Tonnes (MT) of coal has taken place with annual potential savings of Rs. 3,651 Crore.