The Hindu : Liberal coal sales policy

Online edition of India's National Newspaper
Wednesday, Jan 07, 2004

Business

Business

Liberal coal sales policy

NEW DELHI JAN. 6. In a bid to improve coal supplies to important industrial segments, the Government today ordered liberalisation of coal sales policy bringing major industries such as aluminium and paper into the core sector fold, a move that would also benefit PSUs including BHEL.

An order issued by the Coal Ministry has recognised as many as four new categories for inclusion under the core sector.

Besides extending the status to aluminium and paper industries, the new policy has granted similar recognition to PSUs for own consumption and for export purposes under bilateral arrangements.

This indicates that these industries would get priority alongside major users such as power, steel, fertilizers and cement in procuring supplies.

The move would also address grievances of these segments over inadequate supplies, official sources associated with the process said.

The new regime would benefit more than 60 consumers including Hindalco, Indal and IFFCO. While the move is expected to improve the supply position, analysts were sceptical saying amounts involved were very small and that insufficient investments to create fresh capacity was hampering production. — PTI

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