Government raises cap on coal sale via state-nominated agencies

New Delhi, Sep 29: The government has hiked the annual cap of coal for sale through state-nominated agencies to 10,000 tonnes per annum from 4,200 tonnes per annum (TPA).

"Union Ministry of Coal has issued an order with respect to the amendment to the New Coal Distribution Policy (NCDP), 2007 to increase the annual cap of coal from 4,200 tonnes per annum for sale through state-nominated agencies (SNA) to 10,000 tonnes per annum," a Coal Ministry statement said on Wednesday.

The New Coal Distribution Policy, 2007 lays down the guidelines for distribution and pricing of coal to various sectors.

The ministry has also amended the phrase "small and medium sector", as mentioned in the NCDP, to "small, medium and others".

The order said the new guidelines will also be applicable to the distribution of coal from Singareni Collieries Company (SCCL).

At a time of surplus coal availability in the country, there have been requests from consumers and state governments for upward revision of the annual cap on coal through SNAs.

The amendments are among the steps taken by the government to improve ease of doing business and make more coal available for small, medium and other sectors.