We are primarily working for efficient coal allocation to MSMEs: NSIC

New Delhi, June 24 (KNN) Odisha Small Industries Corporation (OSIC) and National Small Industries Corporation (NSIC), the nodal agencies for supply of coal have been allocated 1, 08,000 tonnes and 75,000 tonnes for supply to MSMEs in the state for the Financial Year 2016-17 (FY 2016-17). 

In this respect, the State Government has requested Coal India Limited (CIL) to allow Odisha Small Industries Corporation (OSIC) to execute fuel supply agreement (FSA) for distribution of coal to micro, small and medium enterprise (MSME) units and has even increased its tenure from one to two years.

The coal requirement of an MSME unit is calculated on the basis of a joint capacity assessment made by District Industries Centre (DIC) and MSME Development Institute under the Ministry of MSME, Government of India. Each DIC general manager recommends the case to the specified State-nominated agency for distribution of fuel to the industrial units of the district concerned with approval of the District Collector.

There are more than 40 coal consuming units in the State that include refractories, casting units, chemical factories, coal briquettes and textile mills.

The nodal agency NSIC has been effectively handling the supply of coal to the MSME units in the state after busting of a scam in this regard in 2010 with its priority towards MSME sector only.

Talking to KNN on this issue, Gopinath Bhattarchaya, Deputy General Manager, NSIC, Bhuwaneshwar, said, “The collective allocation of 1,08,000 tonnes, which is the maximum limit this year has increased from past year but if we see individual demand of MSMEs that has reduced due to recent industrial conditions that are showing very slows signs of recovery. Generally allocation done is less than estimated figures so that MSMEs make best use of this first and then can opt for more allocation. This way demand for coal would not exceed than the total amount that has been procured from CIL. Hence, like the previous year, this year also FSA amounts to 90, 000 tonnes of coal.”

When asked about the problems MSMEs face in obtaining coal he answered,

“MSMEs initially faced problems but not now. Our organisation primarily works for MSMEs and we keep a close watch that every unit gets their demanded coal requirement. Hence, there is no scope of any kind of leakages or losses in allotment. For this aim only NSIC was established,” the NSIC official added.

Nitin Gadkari, Union Minister for Highways, Transport and Shipping had also recently emphasised on the fact that Odisha’s MSMEs’ demand for coal have increased. “Coal production in Odisha from Mahanadi Coalfields Ltd (MCL) is projected to touch 300 million tonne and to evacuate coal, a railway track is being constructed from Talcher to Paradeep at a cost of Rs 7000 crore,” he had said. (KNN/TL)