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Coal India relaxes mine-specific coal policy to benefit the smaller consumer

Published by , Assistant Editor
World Coal,

Coal India has relaxed the norms of its mine-specific coal supply policy to improve the availability of coal to its smaller consumers.

Introduced in 2011, the mine-specific coal policy was created in order to enable the consumer to benefit from assured supply from a preferred source and a reduction in logistics costs.

The policy was initially only applicable to consumers who required a minimum of 1 million t of coal per year.

However, last week the Coal India board cleared a proposal that will allow smaller consumers to benefit from this policy. The minimum amount of coal per annum requirement was downsized to a quarter of the original figure to 0.25 million tpy.

“The mine specific coal supply policy was conceived in 2011 to enable consumers benefit from assured supply from a preferred source and gain from reduction in logistic expenses. Now, with Coal India board clearing the decks, the policy norms have been relaxed considerably to accommodate greater number of consumers under the ambit of the policy,” a senior Coal India executive said. 

“This change would help consumers with smaller quantities of coal requirement,” said the executive. This was done as the market dynamics, profile of consumers and mines vary from one subsidiary of Coal India to another. It was felt there was a need for a flexible mechanism to enable coal companies cover larger number of mines and bring additional consumers under the fold of the scheme. 


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