Cabinet Committee on Economic Affairs has given approval to a new Coal Linkage Policy to ensure adequate supply of fuel to power plants.

• Coal linkage policy is a policy designated by the union government for the allocation of coal among thermal power plants.
• Inadequate availability of domestic coal coupled with high price for imported coal requires the government to allocate the available coal rationally among the power plants

This is especially necessary as the coal producing firms are public sector companies. Also, the pricing of coal is an another important issue. In this context, the government designates coal linkage policies to allocate coal among different thermal power plants.