CIL eases coal supply norms

CIL eases coal supply norms
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Kolkata, Nov 6: Coal India (CIL), the Maharatna coal company, has relaxed norms of ‘mine-specific coal supply’ policy, which would ease availability of coal to consumers having less than one million tonne (MT) of coal requirement per annum. It would now benefit a large number of its linked small consumers.
The mine-specific coal supply policy was conceived in 2011 in order to enable the consumer to benefit from assured supply from a preferred source and gain from reduction in logistic costs. However, the policy was applicable to consumers having a minimum requirement of 1 MT of coal per annum. Further, the mine from which the coal is sourced should have been of 2.5 MT per annum production capacity.
Now, with the CIL Board clearing the decks, the policy norms have been relaxed considerably to accommodate a greater number of consumers under the ambit of the policy. The minimum per annum requirement of the consumer has been downsized to a quarter from 1MT of coal to 0.25 MT. Also, the number of mines for participation in the policy has been expanded due to the relaxed norm.
“This change would be a boon to consumers having smaller quantities of coal requirement,” said a CIL official elaborating “this was done considering the market dynamics, profile of consumers and mines, varying from subsidiary to subsidiary”.

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