22nd April, 2003
Ministry of Coal  


NEW COAL SALES POLICY


LOK SABHA

A new policy for sale of coal to non-core sector has been formulated and circulated in January, 2003 to all coal companies with a view to make the marketing of coal more transparent. The salient features of the proposed sales policy are:

    1. Linkage and sponsorship are to be done away with
    2. Supply in future to be based on bilateral fuel supply agreement.
    3. Existing valid linked consumers to be offered coal under the new system in the first place.
    4. Certain quantity to be made available for seasonal consumers like BRK etc. through the Open Sales Scheme route also.
    5. Coal Supply to non-core sector to be made in a manner without affecting coal supply to core sector.
    6. Additional availability, if any, after meeting requirement of the earlier linked consumers in non-core sector will be offered for intending buyers separately.
    7. To minimize diversion of coal obtained by linked consumers to the open market, differential pricing system of coal under Open Sales Scheme (OSS) and to regularly linked consumers has been eliminated. Now coal is offered only at notified price irrespective of the category of buyer.

This information was given by Shri Kariya Munda, Minister of Coal, in a written reply to a question in the Lok Sabha today.