October 08, 2008

CIL to meet deadline of new coal distribution policy

Coal India Limited has announced that it will implement the new coal distribution policy finalized in October 2007, within the stipulated deadline of April 18th 2008.

Mr K Ranganath marketing director of CIL said that "We will meet the deadline for implementing the new coal distribution policy within the deadline of April 18th 2008."

Mr Ranganath said that under the policy, CIL will sign fuel supply agreement with all the coal consumers requiring above 4,200 tonne per annum.

He added that "The final fuel supply agreement for the power utilities and fertilizer companies will be sent to consumers by April 15th 2008. While, the model fuel supply agreement for non power and fertilizer companies has already been sent for signing."

He said that existing consumers requiring below 4,200 tonnes of coal per annum could sign the fuel supply agreement and for new consumers a new policy had been introduced by which CIL would sign fuel supply agreement with the respective state appointed agency who would supply coal at a fixed price. He added that "Already 8 states have expressed interest to sign the fuel supply agreement through their respective agencies."

Credit rating agency CRISIL has been appointed by CIL to draft the model fuel supply agreement and based on final comments from consumers, the final fuel supply agreement would be finalized.