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The coal supply to Non-Regulated Sector (NRS) is through Fuel Supply Agreements (FSAs) based on their long term linkage /Letter of Assurance (LoA) as recommended by Standing Linkage Committee (Long-Term). The coal supply to the steel Public Sector Units (PSUs) is also through Memorandum of Understanding (MoU). Ministry of Coal vide letter No. 23011/51/2015-CPD (Pt-I) dated 15.02.2016 issued policy guidelines for Auction of linkages of Non-Regulated Sector.
In this policy, it has been stipulated that all allocations of linkages/LOAs for non-regulated sector viz. Cement, Steel/Sponge Iron, Aluminum and Others [excluding fertilizer (urea sector)], including their CPPs, shall henceforth be auction based. It is also provided that there will be no renewal of existing FSAs of non-regulated sectors [except FSAs of CPSEs and Fertilizer (urea)]. Coal India Ltd has accordingly been conducting linkage auctions under Non-Regulated Sector, including for Steel, Cement & Sponge Iron, and FSAs are signed with the successful bidders by the subsidiary coal companies of CIL. In addition to it, coal is supplied to the NRS through exclusive e-auction of coal, in which only end use consumers of NRS participate.
In the case of steel PSUs, coal supplies through MoU are made to SAIL and RINL. In 2017-18 (up to 31.12.2017), the coal supply through MoU has been 17.97 lakh tonnes.
This information was given by the Minister of Railways and Coal Shri Piyush Goyal in a written reply to a question in Rajya Sabha today.
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