Coal India Ltd (CIL) on Monday said it has relaxed norms governing supply of the dry fuel to small consumers, a move that would increase availability of coal for customers who need less than one million tonnes a year.
The state-run monopoly eased the Mine-Specific Coal Supply policy, lowering the annual requirement of coal to 0.25 million tonnes for small consumers. “This change would be a boon to consumers having smaller quantities of coal requirement,” said an official of the company.
CIL took the decision considering the market dynamics, profile of consumers and mines, varying from subsidiary to subsidiary of Coal India.
“A need was felt for a flexible mechanism to enable coal companies explore willing consumers of all sectors with whom mine-specific coal supply arrangement can be made from existing and new mines,” the official added.
The Mine-Specific Coal Supply policy was framed in 2011 to allow customers get assured supply from a preferred source and benefit from reduction in logistic costs.