The Hindu : Business : Coal distribution policy to be reviewed

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Coal distribution policy to be reviewed

Special Correspondent

A meeting with all the stakeholders and the user groups has been called early next month

KOLKATA: The New Coal Distribution Policy (NCDP) announced in October 2007 is in for review and a possible recast. A meeting with all the stakeholders and the user groups has been called early next month.

Confirming this, Alok Perti, Additional Secretary in the Union Coal Ministry, indicated here on Wednesday that the meeting would be held in New Delhi on June 8. It would be chaired by the Union Coal Minister. The aspects that may be re-looked at include normative supplies, proportion of coal to be put under e-auction as also the crucial issue of imports of coal by Coal India Ltd at a time when it is under the Open General Licence.

The NCDP evolved after the apex court had struck down the then e-auction system saying that there should be a proper policy for selling coal. The NCDP scrapped the system of classifying consumers into core and non-core segments saying that while the requirements of the defence sector and the railways will be met fully at the notified price, that of the power sector would be met as per the normative requirement of the consumers through fuel supply agreements (FSAs) with the CIL at fixed prices of coal.

This normative aspect will now be reviewed, it was learnt. The new policy had also replaced the linkage system with the fuel supply agreements, which it was felt would be a more transparent bilateral commercial agreement.

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