Coal Distribution Policy

Distribution of Coal is guided by New Coal Distribution Policy (NCDP) circulated by Government in October, 2007, for all sectors of consumers, coal is supplied under Fuel Supply Agreement (FSA). This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (IC) in a written reply to a question in the Lok Sabha today. For meeting the requirement of small consumers with annual requirement less than 4200 tonnes per annum in various States, coal is supplied under FSA to State Government nominated agencies. Consumers pertaining to Power Utility (including IPPs), Captive Power, Steel, Sponge Iron and Cement are allocated coal by way of clearance for issuance of Letter of Assurance (LOA) from Coal India Limited(CIL)/Singareni Collieries Company Limited(SCCL) through the Inter-Ministerial forum of Standing Linkage Committee (Long-Term), the Minister added.