Govt increases annual cap of coal through SNAs; amends phrase of small & medium sector

New Delhi, Sep 28 (KNN) Improving ease of doing business environment in the country, the government has raised the annual cap of coal for sale through State Nominated Agencies (SNA) and has also amended the phrase, ‘small and medium sector’, as mentioned in the NCDP to ‘small, medium and others’.

The annual cap of coal has been increased from 4200 tonnes per annum for sale through SNA to 10,000 tonnes per annum.

The rationale for the amendment, as cited in the order, is that only small and medium sector consumers, having requirement less than 4200 tonnes per annum were entitled to take coal through SNA, large units having requirement of less than 4200 tonnes per annum were not recommended for coal by the District Industries Centre (DIC).

Moreover, the limit of requirement of less than 4200 tonnes per annum needed to be revised as small units might have expanded over a period of time.

As adequate quantity of coal at notified price through SNA would be available for this sector , this amendment is seen as one of the many steps taken by the Government to improve ease of doing business in the country and make more coal available for the small , medium and other sectors, the Union Ministry of Coal said in a statement.

In a statement, the Union Ministry of Coal said that it 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 4200 tonnes per annum for sale through State Nominated Agencies (SNA) to 10,000 tonnes per annum.

“In addition to raising the annual cap of coal, the Ministry has also amended the phrase, ‘small and medium sector’, as mentioned in the NCDP to ‘small, medium and others’,” it added.

The guidelines will also stand applicable to the distribution of coal from Singareni Collieries Company Limited (SCCL).

There have been requests from consumers and state governments for reconsideration of guidelines as mentioned in NCDP, 2007 for upward revision of annual cap on coal through SNAs and also for amending the condition of the small and medium sector to include other sectors where annual coal requirement is very low, said the Ministry. (KNN Bureau)