The widening demand-supply gap and depleting production of Coal India Limited has compelled the coal ministry to overhaul the national coal distribution policy. If the ministry has its way then soon a new distribution policy would be in place to serve the comprehensive coal linkage needs of core and non-core sectors by introducing adequate flexibility in coal supply to meet the growing demands of these sectors and promote energy security.
After a meeting with senior officials from coal, power and other ministries today, coal minister Sriprakash Jaiswal told The Indian Express that the distribution policy, which was over three years old needed to be re-shaped as due to ever-growing demand of the mineral from the power sector, it has virtually become impossible to provide additional coal to other sectors. Due to the negative balance of coal, the Standing Committee on Linkage for steel and cement could not be convened for the past three years, he said. This was also the reason why CIL’s policy for non-SLC (LT) category of consumers could also not be notified so far.
The existing policy mandates coal companies to meet 100 per cent requirement of defence and railway sectors at notified price, while meeting 75 per cent of the quantity of normative requirements of other linked consumers through Fuel Supply Agreements (FSAs). Under it Letters of Assurances are issued and all core and non-core sectors are required to enter into FSAs with the companies. The policy mandates the states to nominate their agencies to the Centre for transparent distribution of coal to small and medium consumers, whose annual requirement is less than 4,200 tonnes.
The call to reduce the use of coals is valid for western countries but unfortunately, coal publications show developing economies are more likely to increase their use of coal in coming years because of its affordability and to meet increasing demands for electricity and steel for the coal industry. www.coalportal.com
ReplyDelete