Business   

New coal distribution policy announced

NEW DELHI: Giving an indication that it was serious about meeting challenges set under the XI Plan for the power sector and it was also keen on protecting the interests of farmers, the Union Government on Friday announced a new coal distribution policy giving top priority to power and fertilizer sectors.

Under the new policy, both power and fertilizer sectors would get as much quantity required at pre-determined prices.

“Since the power and fertilizer sectors are operating in a price regulatory regime, coal to the extent of 100 per cent of the normative requirement of the units in these two sectors will be made by the coal companies, but only under Fuel Supply Agreements, an official statement said here. All other consumers with requirement of more than 4,200 tonnes annually would be provided 75 per cent of their normative requirement.

The present system of classification of consumers into core and non-core sectors has been done away with. The Government has also changed the concept of granting coal linkages and introduced the feature of Letter of Assurance (LoA).

Such LoAs would be converted into Fuel Supply Agreements after specific milestones are achieved by the project promoters, the policy states.

Consumers granted LoA would have to furnish a bank guarantee equivalent to five per cent of their annual requirement of coal, which will be forfeited if the suggested milestones were not achieved within the stipulated period, it added.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

No cap on telecom players in a service area
‘Financial services, the next engine of growth’
Ten new SEZs cleared, BoA yet to decide on DLF
Wipro Q2 revenues up 35 p.c.
Oman beckons entrepreneurs
Panel moots higher excise on packed tea
New coal distribution policy announced
Kotak Life Insurance opens new branch
Rupee recovers
Cognizant acquires marketRx for $135m
Sensex drops 438 points
Exchange Rates
Bullion Rates
Inflation hits five-year low
MMTC forms joint ventures
Forex reserves up by $5.3 b
Financial sector technology vision
GE Shipping declares interim dividend
Moser Baer arm to raise $100m
Zak Office Technology Expo in Chennai
Bajaj Auto second quarter net at Rs. 336 cr.
Tech Mahindra profit rises by 28 p.c. in Q2
ACC Q3 sales increase by 22 p.c.

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu