Coal ministry clears fresh linkage extensions, sharpens policy boundaries
India’s coal linkage framework is showing clearer edges—offering temporary relief where operational continuity is at stake, but drawing firm lines around policy interpretation.
This shift was evident in the December 4 meeting of the Standing Linkage Committee (Long Term), where the Ministry of Coal approved a one-year bridge-linkage extension for NTPC’s Barauni Stage-II thermal power station, cleared new state-level coal linkages for Haryana and West Bengal under the Revised SHAKTI Policy, 2025, and deferred Gujarat’s relocation-linked request for further examination.
The decisions, taken together, reflect a more coordinated and disciplined federal approach to coal allocation as India aligns thermal capacity planning with longer-term resource adequacy goals.
Temporary relief for NTPC’s Barauni-II
At the centre of the deliberations was NTPC’s 2×250 MW Barauni Stage-II plant in Bihar. The station is linked to the Badam coal block, which has yet to commence operations due to delays in land acquisition, rehabilitation challenges, and pending mine-opening approval from the Coal Controller Organisation.
With its earlier bridge linkage already expired, NTPC warned of potential generation loss if interim coal supplies were not restored. After reviewing inputs from the Ministry of Power, the Central Electricity Authority, NITI Aayog and Coal India Ltd, the committee approved a one-year bridge-linkage extension on a tapering basis. Coal will be supplied by Coal India on commercial terms, providing short-term continuity until Badam mine production—now expected only from mid-2026—begins.
Gujarat relocation case sent back
Gujarat’s proposal, linked to Torrent Power’s Sabarmati Thermal Power Plant, faced a more cautious response. The state sought coal linkage for a proposed 362 MW capacity addition, arguing that relocation of the existing plant was necessary to free up ash pond land for an international sports facility.
Regulators, however, noted that the proposed new plant would not share infrastructure with the existing station. This disqualifies it from being treated as a brownfield expansion under the Tariff Policy, 2016. With no explicit policy framework addressing relocation-driven capacity shifts, the committee referred the matter back to the Ministry of Power—signalling growing intolerance for policy grey areas.
Clear approvals for Haryana and West Bengal
Haryana secured coal linkage for an 800 MW expansion unit at the Rajiv Gandhi Thermal Power Plant, Khedar, aligned with the state’s resource adequacy projections up to FY35. Coal India will now finalise sourcing and logistics.
West Bengal received approval for earmarking coal linkage for 1,600 MW of capacity to be procured through tariff-based competitive bidding, subject to distance norms or exemptions from the Empowered Committee. At the same time, 100 MW of legacy linkage under the earlier SHAKTI framework was formally allowed to lapse.
A clearer signal on coal policy
The latest decisions underline a tightening coal allocation regime—one that balances short-term system reliability with stricter adherence to planning norms and tariff policy. As India’s power sector evolves, coal linkages are increasingly conditional, time-bound, and closely scrutinised.
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