Govt hikes annual cap of coal sale through SNAs

The annual cap of coal for sale through State Nominated Agencies has been hiked to 10,000 tonnes per annum from 4,200 tonnes per annum (TPA).
The move comes at a time when there is surplus coal in the country.
The coal ministry issued an order yesterday with respect to amendment to the New Coal Distribution Policy (NCDP), 2007 to increase the annual cap of coal from 4,200 TPA for sale through State Nominated Agencies (SNA) to 10,000 TPA, an official statement said.
Besides, the ministry has amended the phrase 'small and medium sector', as mentioned in the NCDP, to 'small, medium and others'.

The order states that the above guidelines will also be applicable to the distribution of coal from Singareni Collieries Company (SCCL).
The NCDP, 2007 laid down the guidelines for distribution and pricing of coal to various sectors. As per the policy, the scope of coverage through SNAs was increased up to 4,200 TPA.

There have been requests from consumers and state governments for upward revision of annual cap on coal through SNAs and also for amending the condition of small and medium sector to include 'other' sectors where annual coal requirement is very low.
The rationale behind the amendment is that only small and medium sector consumers, having requirement less than 4,200 TPA were entitled to take coal through SNAs, large units having requirement of less than 4,200 TPA were not recommended for coal by the District Industries Centre (DIC).

Moreover, the limit of requirement of less than 4,200 TPA needed to be revised as small units might have expanded over a period of time.
As adequate quantity of coal at notified price through SNAs would be available for this sector, this amendment is seen as one of the many steps taken by the government to improve ease of doing business and make more coal available for small, medium and other sectors.