December 02, 2008

Coal ministry formulates new fuel supply & transport agreement

It is reported that union coal ministry has formulated a new fuel supply and transport agreement to ensure supply of required coal quantity and quality in a time bound manner. The proposed agreement will be a tripartite agreement between the coal ministry, consumers and the railways.

The agreement is different from the present fuel supply agreement wherein the coal companies enter into an arrangement with the consumers in some cases while the consumers enter into fuel transport agreement with the railways. NTPC and Coal India have given in principle approval to the new agreement.

Fuel supply and transport agreement is being drafted by the coal ministry following directions from the energy co ordination committee headed by Dr Manmohan Singh prime minister of India.