(a) whether the Government proposes to bring about a
change in the present policy of providing coal through
coal linkage for captive use;
(b) if so, whether the coal would become more costlier for
the small companies;
(c) if so, whether the new policy would also be
applicable to the companies having already procured coal
through coal linkage; and
(d) if so, the manner is which small companies would
compete in the open market with the big companies which
have procured the coal blocks?
THE MINISTER OF STATE FOR COAL (DR. DASARI NARAYANA RAO)
(a)to(d): The policy in respect of distribution of coal
amongst non-core sector consumers, following Kolkata High
Court judgement in Bijay Poddar Vs.Coal India Limited case
is under formulation. E-auctions are being held by coal
companies on a trial basis. Based on the feedback received,
the policy on distribution of coal will be finalized.
(a): There is no change in the present policy of
providing coal to linked consumers in core sector, which is
decided in the Standing Linkage Committee(Short-term), an
inter-ministerial body comprising representatives from
Ministry of Coal, Ministry of Power, Ministry of Railways,
Central Electricity Authority, Coal India Limited and Coal
Companies, after due consultation with Power Utilities.
As regards sales to non-core linked consumers, there is no
change in quantity consideration, which continues to be
guided by the Maximum Permissible Quantity (MPQ) concept
and the availability. However, the pricing of coal to non-
core linked consumers will be based on E-auction price
instead of the notified price.
(b): The coal price obtained through electronic auction
would depend entirely on the bids made by the
participants.
(c): In respect of core sector consumers, the new policy
does not envisage any change at present. However,
consumers in non-core sector, who already have coal
linkage, can participate in “on line†E-auction, but the
price applicable will be based on the actual rates
arrived on successful bids.
(d): The present concept of E-auction is meant only for
non-core sector consumers, whereas allocation of coal
blocks relates to core sector consumers. Therefore, both
the sectors are not comparable.