Non-regulated sectors to get coal via auction: Cabinet

Quick Register
User Name:
Human Verification

Go Back   UNP > Chit-Chat > News

UNP Register


Old 04-Feb-2016
Post Non-regulated sectors to get coal via auction: Cabinet

The government today said the allocation of coal linkages for the non-regulated sectors, which includes steel and cement, will only be done through the auction route to ensure transparency in the entire process. The decision was taken at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi today.
Among the other decisions taken at the meeting were allowing the Ministry of Railways to form joint venture companies with the state governments to mobilise resources for undertaking various rail infrastructure projects and delinking Rajasthan Electronics and Instruments Limited (REIL), Jaipur, from its parent company Instrumentation Limited (IL) and turn it into an independent Central Public Sector Enterprise under the Department of Heavy Industry.
Power and Coal Minister Piyush Goyal said the CCEA has approved the allocation of coal linkages for non-regulated sectors only through auction. He said the sectors included are cement, steel, sponge iron, aluminium, among others.
“Except for the power and fertiliser sectors, non-regulated sectors like steel, aluminium, cement and sponge iron will in future bid in transparent auctions for coal linkages,” he said.
Clarifying that the bidding process will only be instituted for fresh linkages, Goyal said: “Existing private party linkages will continue till the expiry of the current FSAs (fuel supply agreements) and they have to bid in auctions after these lapse for getting fresh coal linkages.”
Coal linkages for 24 million tonne would go under the hammer in the first year.

Post New Thread  Reply

« Lanka’s ex-army chief Fonseka joins govt | As Zika spreads, US reports sexually transmitted case »