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Coal India Focuses on Ease of Business & Transparency in Operations

Coal India Focuses on Ease of Business & Transparency in Operations


In a step towards consumer friendly approach and increasing transparency in business operations of Coal India Limited (CIL), Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal New and Renewable Energy, launched a Web Portal for distribution of coal by State Nominated Agencies (SNA), here today. Speaking on the occasion, Shri Goyal said that this portal symbolizes the level of transparency that Prime Minister Shri Narendra Modi has promised to the people of India and represents corporative federalism of all the stakeholders. Appreciating the web portal, the Minister urged Coal India Limited to create its mobile application. He also suggested tying up with Railways for coal rake booking of smaller quantities through the portal. Shri Goyal also heard feedback from the stakeholders at the event.

Shri Anil Swarup, Secretary, Ministry of Coal, said that this web portal will revolutionize the way coal business is done in the country. Motivating states for paperless communication, Shri Swarup said that digitizing information and putting it public purview will save time and energy of Government departments. The Web portal would provide small and medium consumers access to information about SNAs, availability, booking/supply distribution of coal in public domain. The portal offers facility of online registration to consumers. The web portal also provides monitoring of sales margins of SNAs and platform to the consumers for feedback.

Small and Medium sector consumers like, paper, rolling mills, cokeries, brick kilns, refractories, glass, electrical and machinery units, textiles, soft coke manufacturing units etc., having annual requirement up to 4200 metric tonnes and not having Fuel Supply Agreement (FSA) with coal company may source coal under New Coal Distribution Policy (NCDP) through agencies nominated by the State Government. 8 Million Tonnes of coal is earmarked by Coal India to consumers under this category under NCDP.

While the State Governments would work out their requirement, the distribution would be through agencies nominated by the States. Fuel Supply Agreements (FSAs) would be signed between SNAs the coal company. Under the scheme SNA is entitled to charge actual freight and up to 5% margin as service charge from the consumers. It would be the responsibility of State Government to ensure distribution of coal in a fair and transparent manner.

CIL, in the interest of its consumers and for the ease of business has brought about certain modifications and changes in the business clauses. The earlier clause of quarterly quantity to be supplied within the same quarter has now been extended to carry over the booked quantity till the end of the contract. Two more clauses – coal that could not be supplied due to the Railway Failure which was considered as deemed delivery and termination of FSA if the level of lifting is less than 30% have been done away with. These changes provide the consumers greater liberty to exercise their choice of lifting the coal at any time during the contract period. The tenure which was earlier one year is modified now to 2 years or less, corresponding to the period for which the nomination is received.

Further actions envisaged are integrated payment gateway – consumer to SNA and SNA to Coal Company; automated SMS/mail service alerts and end to end activities integration through ERP.On the occasion several Members of Consultative Committee attached to Ministry of Coal, Dr. A K Dubey, Special Secretary (Coal), Shri Sutirtha Bhattacharya, Chairman, CIL and other senior officers of Coal Ministry and Coal India and several representatives of State Governments and consumers  were present.


Anand Gupta Editor - EQ Int'l Media Network


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