Coking coal linkage for non-regulated sector to have tenure of up to 30 years

Coking coal linkage for non-regulated sector to have tenure of up to 30 years

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New Delhi: The centre has approved revised tenure for coking coal linkage for the non-regulated sector auction, the coal ministry has said in a letter to Coal India and Singareni Collieries Company Limited (SCCL) on June 1.

“It has been approved that the coking coal linkage in the non-regulated sector linkage auction may be granted for a tenure upto 30 years,” the ministry said adding that the move comes as a modification in the policy for auction of linkages of non-regulated sector issued in 2016.

In an earlier announced policy, the ministry had said that all the allocations of linkages for non-regulated sector which includes cement, steel, sponge iron, aluminium, and others will be auction based with the tenure of fuel supply agreement of 15 years.

For the auction of coal linkages in the non-regulated sector, the proportion of coal allocation between power and non-power sectors is decided to be continued at the same level as the average proportion of the last five years, which is 75 per cent power and 25 per cent non-power.

For the auction of linkages, separate quantities will be earmarked for sub- sectors of the non-regulated sector and auctions will be conducted by CIL and SCCL through competitive bidding by earmarking a mine within a subsidiary as deemed fit, the ministry said.

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