Coal news and updates

Coal ministry increases validity of LoI for coal supply

The Coal Ministry has allowed Coal India to extend the validity of letter of intent (LoI) of coal supply to power projects that have been delayed due to reasons beyond their control. The decision to extend the validity of the LoI beyond 24 months will, however, be allowed, after examining the status of the projects, by the Standing Linkage Committee.

This committee examines coal linkages to consumers from Coal India. It meets regularly to take decisions of new projects and projects that are under construction.

According to the original format of the New Coal Distribution Committee the validity of the letter of intent issued by Coal India was earlier either one or two year. Beyond which it was be cancelled and any deposits forfeited.

It has recently been decided by the coal ministry that the standing linkage committee of coal supply allotment will have the power to extend the validity of the supplies if the projects are faced with hurdles beyond their control.

"There have been numerous instances where projects are delayed beyond controls of the project promoters. These projects are likely to get the extension when they are presented to the standing linkage committee," a statement from the ministry of coal said.

The statement made by the coal ministry mentions that all pending cases will be considered for extension of validity of their letter of intents by the standing linkage committee.

Source: The Economic Times