The government has extended the tenure of coking coal supply to 30 years under the coal linkage offered at auction for non-regulated sector like steel.
This development comes at a time when more than 80 per cent of domestic fuel production is with Coal India Limited (CIL), which is connecting to the non-regulated sector for domestic coal, which is abundantly available in the country.
Now, govt has given approval for coking coal linkage for auction in non regulated areas.
On monday, Mininstry of coal said in a letter to Coal India Limited that, It has been approved that coking coal linkage in non-regulated area linkage auction can be granted for tenure of up to 30 years.
The ministry said that while setting guidelines for the auction of coal linkages in the non-regulated sector, the policy stated that" the new Fuel Supply Agreement (FSA). The tenure can be decided by the Ministry of Coal " subject to a tenure of 15 years.
Thus, the policy for auction of non-regulated sector linkage is revised, with the Ministry asking CIL to take further action accordingly.
On the one hand, domestic coal is abundance in the country while on other hand, there is a decrease in demand for dry fuel.
To boost the demand for coal, the government has announced measures such as increase in supply for linkage consumers. It has taken several relief measures for CIL consumers including the power sector.
Coal Minister Pralhad Joshi wrote a letter to Chief Minister of the state asking them not to import dry fuel and take domestic supplies from CIL.
The Center had asked several producing companies including NTPC, Tata Power, Reliance Power to reduce the import of dry fuel for blending and replace it with domestic coal.
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