Coal limit for sale from State Nominated Agencies - 10,000 tonnes
Q. Which of the following is/are true regarding recent amendment to the New Coal Distribution Policy (NCDP), 2007?
1) It has increased the annual cap of coal from 4200 tonnes for sale through State Nominated Agencies to 10,000 tonnes.
2) By this amendment large scale industries cannot avail coal through the State Nominated Agencies.- Published on 05 Oct 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 1
- Union Ministry of Coal 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’.
- 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.
