MINISTER OF STATE IN THE MINISTRY COAL (DR. DASARI NARAYANA RAO)
(a)&(b): Yes, Sir. The New Coal Distribution Policy has
been announced by the Government on 18th October,2007. The
salient features of the new policy are given below:-
(i) The existing classification of consumers into Core &
Non-core has been reviewed and it has now been decided
to dispense with the same. Instead, each
sector/consumers would be treated on merit keeping in
view, inter-alia, the regulatory provisions applicable
thereto and other relevant factors.
(ii) Requirements of defence sector and Railways will
be met in full at notified price, as at present.
(iii) While 100% of the quantity as per the normative
requirement of the Power Utilities including
Independent Power Producers (IPPs)/ Captive Power
Plants ( CPPs) and Fertilizer Sector consumers would
be considered for supply of coal, through Fuel Supply Agreement (FSA) by
Coal India Limited (CIL), 75% of the quantity as per
the normative requirement of the Other consumers/actual
users would be considered for supply of coal through
FSA at fixed prices to be declared/notified by CIL.
(iv) Enhancement of present cap of 500 tonnes per annum
to 4200 tonnes per annum for the small & medium sector
consumers. The earmarked quantity would be distributed
through state government agencies, central government
agencies or industry associations as notified by the
State Governments. The quantity earmarked for
distribution to these agencies would also be increased
to 8 million tonnes annually, to start with.
(v) The linkage system will be replaced with a more
transparent bilateral commercial arrangement of
enforceable Fuel Supply Agreement FSAs.
(vi) The Letter of Assurance (LoA) to be issued to new
consumers now pursuant to the new policy will have a
validity of 24 months for consumers/applicants of Power
Utilities, CPPs & IPPs and 12 months for other
consumers instead of 30 months as earlier. The allottee
of LoA would be required to fulfill certain
stipulated conditions and meet the milestones
within this period and there upon approach coal
companies for entering into FSA.
(vii) E-auction scheme for distribution of coal to be
introduced to provide access to such consumers,
who are unable to source coal through available
institutional mechanisms,
(viii) CIL would undertake verification of such consumers
of erstwhile non-core sector consumers, in a time
bound manner, either directly or through an agency,
so as to check the veracity of their claim of being
bonafide consumers of coal and thereafter act
accordingly.
(c): The New Distribution Policy envisages an efficient and
fair distribution of coal resources among various consumers
of economy . Therefore, to that extant it would address the
issues concerning demand for coal.
(d): The New Coal Distribution Policy provides for a
time frame of two months to one year for implementation
of various provisions of the policy.
(e)&(f): There is no such adverse report received from
any sector on introduction of the New Coal Distribution
Policy. The new policy is not likely to have any
adverse impact on any sector.
