banner-1 Hon. Minister of Steel Sh. Narendra Singh Tomar
माननीय इस्पात मंत्री, श्री नरेंद्र सिंह तोमर
banner-1 Hon. Prime Minister of India
भारत के माननीय प्रधानमंत्री जी
banner-1 Hon. Minister of State for Steel Sh. Vishnu Deo Sai
माननीय राज्य इस्पात मंत्री, श्री विष्णु देव साई



The Linkages of coal demand is primarily done with the objective of planning of coal supplies, keeping in view indigenous coal resources as well as the need to supply fuel of appropriate quality to the consumers and at the same time making the most economic use of the available capacity for production and of coal.

The system of Linkages as in vogue, both for core and non-core sector consumers (as it has been evolved over the years) has proved to be immensely useful in fulfilling its objectives. The usefulness and effectiveness of the linkage system is best diverse coal consuming sector, spread over the country, from coalfields having differential growth in production. The Linkage Policy as applicable for different consuming sector is detailed in all its related aspects as follows:



The consumers desiring linkage for supply of coal should apply for linkage to the SLC (long Term). The consumers should route the application through the concerned Ministry to the Chairman, SLC (LT). For example, for setting up a Power Plant, the application has to be routed through the Central Electricity Authority and Ministry of Power. In case of cement unit, it has to be routed through the Ministry of Industry , Ministry of Industrial Policy & Promotion. . The SLC (LT) has the Additional Secretary in the Ministry of Coal as the Chairman. Other members of the SLC (LT). are representatives of CIL, representatives of SCCL, CMPDIL, Railways, Planning Commission, Central Electricity Authority, Ministry of power and representative of Ministry of Industry, Dept. of Industrial Policy & Promotion (as the case may be). The Committee decides the linkage of coal for source of supply, quantum of coal and the made of transportation.


The Additional Secretary in the Ministry of Coal, Govt. of India is the Chairman of the Committee. Representatives of Coal India Limited, Central Electricity Authority, Ministry of Power, Railways, Representatives of Singareni Collieries Co. Ltd. are the member of SLC (ST) for power sector. In SLC (ST) for cement sector besides Chief of Marketing of CIL, representatives of SCCL, Railways, Ministry of Industry, Dept.of Industrial Development are the other members.The committee meets in  March, June, September and December each year to review the coal supplies to Power and Cement Sectors in the quarter and finalize the linkage to consumers in Power and Cement Sectors for the next quarter. Time to time adjustment/incorporation in the quarterly linkages is done by the Chairman, SLC (ST). Minutes of the meetings are drawn and circulated to all concerned for implementation.


Every year requirement of indigenous coking coal is being determined on the basis of the target of hot metal production fixed by the ministry of Steel collectively as well as individually for every Steel Plant in the Country. Requirement of coal coal is being derived proportionately and with the help of prescribed norms in relation with the hot metal production. Accordingly, Ministry of Steel advise Coal India about heir total requirement of indigenous coking coal for the year. CIL then indicates to Steel Authority the total quantity of coking coal that could be supplied during the year.

Allocation of coking coal was earlier made by the Coal controller on month to month basis according to CIL offers for the same period. However vide amendment carried out by the Central Government to the Colliery Control Order 1945, the Government had exempted the

prices and distribution of coking coal from the provisions of Colliery Control Order. Consequently the supply of coking coal are being made by the coal companies them selves on the basis of linkages established by a competent linkage committee or on the basis of then existing commitments.