The Indian Government has increased the tenure of coal supply by up to 30 years under the coal connection given for auctions to non-regulated sectors such as steel. The Ministry said that “The Government has now approved a revised tenure for coking coal linkage in the non-regulated sector linkage auction. It has been agreed that the coking coal linkage in the non-regulated sector linkage auction may be granted for a period of up to 30 years. Defining the guidelines for auctioning coal linkages in the non-regulated sector, the policy provided that the new coal linkage auction is to be held.
As a result, the policy for auctioning non-regulated sector ties has been updated, the Ministry said, asking CIL to take further action accordingly. On the one hand, the country has an surplus of domestic coal, while on the other, there is a decline in demand for dry fuel. In order to boost demand for coal, the government has announced a series of measures, such as increased supply for connecting consumers.
Development is taking place at a time when Coal India Ltd, which accounts for more than 80 per cent of domestic fuel output, is connecting with the non-regulated domestic coal sector, which is abundantly available in the country.
