October 12, 2008

CIL takes up new initiative for coal supply

It is reported that Coal India Limited has taken some new initiatives and will formulate separate fuel supply agreement for power, non power, new consumer and middle and small scale industries. The fuel supply agreement model will be implemented by May 2008.

Mr K Ranganath marketing director of CIL said that it has already issued letters to the power and non power sectors, which are interested to take coal from CIL. He added that "After the companies submit the necessary documents, CIL will sign fuel supply agreement contract with them to supply coal. It will book 140 million tonne of coal for the new consumers in power and non power sector."

Mr Ranganath said that while the contract with the new power companies will be for 24 months, the CIL will sign the agreement with non power sectors for supply of coal for 12 months. He added that the middle and small industries, having a requirement of more than 4,200 tonne a year, will have to approach the CIL to get coal through an authorized state government agency.

CIL has already requested the state governments to send the name of their respective agencies. It will also supply coal to the consumers through forward e auction. Initially, CIL has booked 7 million tonnes for distribution to consumers.