NEW DELHI | Sept 28, 2016: The coal ministry has raised the annual cap on sale of coal through state agencies to 10,000 tonnes per annum from 4,200 tonnes as a way to reduce stock build-up at coal mines.

At the same time, the ministry has also amended the phrase "small and medium sector", mentioned in the New Coal Distribution Policy of 2007, to "small, medium and others" to allow other users to consume coal sold in the open market.

The refreshed guidelines will also apply to distribution of coal from Singareni Collieries Company Ltd. The NCDP laid down the guidelines for distribution and pricing of coal to various sectors.

There move follows requests from consumers and state governments for upward revision of the annual cap and also for amending the condition of small and medium sector to include other sectors with low requirement.

The rationale behind the amendment is that only small and medium sector consumers, with requirement of less than 4,200 tonne per annum, were entitled to take coal through state agencies, 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 tonne per annum 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.

(Source: http://timesofindia.indiatimes.com/)