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Lok Sabha: New Coal Sales Policy New Delhi: March 11, 2003

Under the new coal sales policy for non-core sector, the existing linkages other than snapped and verified and found genuine cases can be restricted only to the present level of Maximum Permissible Quantity (MPQ). However, additional quantities of coal subject to availability can be offered based on a more even handed system of Fuel Supply Agreements (FSAs). Grant of fresh linkage and restoration of linkage to non-core sector has been discontinued. There is also no provision/scope either for Coal India Limited (CIL) or Coal companies to issue fresh linkage, revival/restoration of snapped/lapsed linkages or to effect any change in the linkage already issued for the consumers in the non-core sector. Except the MPQ quantity now being made available to linked consumers, there will be no other loose linkages. Consumers wanting coal in addition to their MPQ, consumers wanting coal beyond the old linkages and new consumers wanting coal are all to be treated alike and are to be allowed to enter into FSAs with the coal companies.

Coal is offered for sale under Open Sales Schemes (OSS) of different grades falling non-coking coal category varying from 'B' to 'F' whenever surplus availability exists after meeting the demand of core sector and regular non-core sector consumers. Booking is accepted on first-come-first-served-basis as provided in the OSS with a stipulation for pro-rata allocation on the opening day of booking whenever booking is more than the offered quantity, with the due approval of competent authority for smooth operation and to avoid any law and order problem. In case booking on the first day is less than the offered quantity, booking is accepted subsequently on first-come-first-served-basis.

This information was given by the Minister of Coal, Shri Kariya Munda, in a written reply to a question in the Lok Sabha today.

Press Release by: PIB/AM/Hb

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