Coal news and updates

164 applications pending for grant of coal linkages to cement sector`

January 21: A total of 164 applications from various companies in cement sector were pending in the Ministry of Coal for the grant of Letters of Assurance (LoA) as on December 20, 2013.

This was disclosed in a meeting of standing linkage committee (long term) or SLC (LT) held in December 2013.

In addition, a total of 43 LoAs were issued to cement sector till now out of which 21 Fuel Supply Agreements (FSAs) have been signed and 2 LoAs have been cancelled, the meeting said.

The balance 20 LoAs granted to 18 plants were initially recommended for cancellation after the coal companies found that milestones were pending in each of the cases. But after representations from the companies, it has been decided that the cancellations notices be reviewed and a separate committee was constituted in South Eastern Coalfields Ltd (SECL) for this purpose, which is yet to come out with any final recommendation.

One of the agenda in the meeting in December 2013 was that since coal supply position is not likely to improve in the near future, fresh application from cement companies for grant of LoAs be kept in abeyance for next two years.

However, the members present in the SLC (LT) generally expressed the view that the
That the issue needed further deliberations as it was not clear about the quantities that would be available for cement sector and as to when the fresh linkages would be considered.

The committee decided to defer the matter for consideration in the next meeting of the SLC (LT).