Jindal Steel and Power said it secured coal linkages of 511,000 tonnes per year in a recently concluded auction for the use of its captive power plants.
“The coal linkages, secured for a 5-year duration, will provide steady supply of fuel to captive power plants run by the company for its steel-making operations,” JSPL said.
The three Captive Power Plants (CPP) of the company are located at Raigarh and Dongamahua in Raigarh District of Chhattisgarh, and for powering its 810 MW power plant in the 6 million ton steel complex at Angul, Odisha.
Coal linkage refers to the reservation of a certain part of the coal produced at a location for use by a specific company for a specific purpose. Without a linkage, companies are forced to buy coal from the open market, which may be less cost-efficient.
Steel making requires a lot of coal, both for use in the furnace to create steel as well as a fuel for generating heat or electricity.
“The coal linkages will ensure a steady supply of thermal coal required to feed the Captive Power Plants at calorific costs significantly beneficial than coal procured through e-auctions,” the company added.
These coal linkages would further enhance the operational efficiencies of steelmaking at JSPL’s recently completed 6 MTPA integrated steel plant at Angul, and at its flagship steel plant at Raigarh. Since, 2016, JSPL has secured coal Finkages of close to 2.3 MTPA (million tons per year) under various sub-sectors for 5-year timeframe.