Coal news and updates

CMA asks Railway Board to withdraw ‘new offer and allotment system’

June 18: The Cement Manufacturers’ Association (CMA), has once again urged the Railway Board, Government of India, to withdraw the ‘New offer and Allotment system’ which has been implemented with effect from April 1, 2014, N.A Viswanathan, Secretary General, Cement Manufacturers’ Association told ICMW.

The association had earlier on April 16 written similar letter to the Board.

The New Offer and Allotment system of rakes had been implemented on the plea that South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) are making offer to the railways for allotment of non-lapsable priority ‘C’ industrial rakes which does not relate to the actual transportation of coal at their sidings and also to arrest escalating arrears of rakes and to bring them down to a reasonable level, according to the letter issued to the Railway Board by CMA.

Due to the implementation of this new policy, it will become economically non-viable for the cement companies to transport coal by roads to as far as 1200 Km and above due to cost issues and environmental and other restrictions, the CMA letter said.