Coal news and updates

The Coal Ministry has amended the New Coal Distribution Policy, 2007 to increase the annual cap of coal sales through State Nominated Agencies to 10,000 tonne per annum from the existing 4,200 tonne per annum.

 

Further, it has also amended the phrase ‘small and medium sector’ to ‘small, medium and others’.

 

The move will help States gather greater revenues through coal sales to the small and medium sectors as well as other independent businesses. The coal will be sourced from both Coal India Ltd and Singareni Collieries Company Ltd.

 

“…only small and medium sector consumers having requirement less than 4,200 tonne per annum were entitled to take coal through state nominated agencies. Larger units having requirement less than 4,200 tonne per annum were not recommended for the coal by the District Industries Centre. Moreover, the limit of requirement of less than 4,200 tonne per annum needed to be revised as small units might have expanded over a period of time,” an official statement said.

 

So far to cater to small consumers, CIL and SCCL have been selling coal to the State nominated agencies, which then sell it to these consumers. “As adequate quantity of coal at notified prices through State Nominated Agencies would be available for this sector, this amendment is seen as one of the many steps taken by the government to improve ease of doing business in the country and make more coal available for small, medium and other sectors,” the statement added.

SOurce:The Hindu Business Line