Coal news and updates

SMEs lifted less than one-fourth of allotted coal in 2013-14

August 14: The small and medium enterprises (SME) sector in the country, whose requirement is less than 4,200 tons per annum, had lifted only about one-fourth of their allotted quantity of 80 lakh tons of coal through notified state government agencies in 2013-14, an official from Ministry of Coal (MoC) said.

“The SME sector lifted only 20.71 lakh tons of coal in 2013-14 through notified state government agencies against 80 lakh tons earmarked for all states,” the official said.

As per the New Coal Distribution Policy (NCDP) notified by the Ministry of Coal in October 2007, consumers in small and medium sectors in the country, whose requirement is less than 4,200 tons per annum, would be distributed earmarked quantity of coal through the agencies notified by the state governments.

The agencies notified by the state governments could be state government agencies/central government agencies (National Co-operative Consumer Federation [NCCF]/National Small Industries Corporation [NSIC] etc) or industry associations, as the
state government may deem appropriate.

The agency so notified would continue to distribute coal until the state government chooses to de-notify it.

The agency so notified by the state governments, are required to enter into fuel supply agreements (FSAs) with coal companies designated by Coal India Limited (CIL) and such FSAs would be based on firm commitments and compensation for default in performance on either side.

The price charged to such agencies would be the same notified price as applicable to other consumers entering into FSAs. The agency would be entitled to charge actual freight and upto 5% margin as service charge, over and above the basic price charged by the coal companies, from their consumers.

The concerned state governments and central government departments having administrative control over the agencies would be responsible for ensuring that coal allotted for targeted consumers is distributed in a fair and transparent manner and appropriate action taken to prevent its misuse.

The quantity to be allocated to this sector may be reviewed on the basis of their performance at the beginning of every year. Allocation of this quantity amongst the states would be done on the basis of their consumption pattern in the past.

Following table provides details of coal supplied by CIL to the SME sector during the last three years and the current year (in lakh tons):