HOW TO GET COAL FROM MCL


Mahanadi Coalfields Limited (MCL) produces non-coking coal of grades ranging from G8 to G15 from its mines located in Talcher Coalfield, Dist: Angul, Odisha and other mines located in lb coalfield spread over the Districts of Jharsuguda & Sundergarh in Odisha.

Mahanadi Coalfields Ltd. (MCL) sells coal by Rail/MGR/Belt/Rail-cum-Sea/Road/Road-cum-Rail(RCR) modes to customers. Coal requirements of all categories of customers i.e. State Gencos, Central Gencos, Joint Ventures of State & Central Gencos, Private Power Utilities/IPPs, Captive Power Plants (CPP), Manufacturing Units of Steel, Sponge Iron, Cement, Fertilizer, Paper etc. are being met by MCL. Coal is being supplied by MCL under all schemes viz. Long Term Linkages granted by SLC (LT), Bridge Linkage, Linkages under SHAKTI Policy, Linkages under Non Regulated Sector Linkage Auction, Special Forward e-Auctions, Spot e-Auctions etc.. Consumers/Traders can source their coal requirement under relevant schemes.

 

POWER SECTOR LINKAGES

MCL has been supplying coal to Power Houses under Fuel Supply Agreements (Pre NCDP FSAs/Post NCDP FSAs-through LOA route/SHAKTI Policy).  Coal is also being supplied to Power Houses under Bridge Linkage through MoU.

Ministry of Coal, Govt. of India vide letter dated May 22, 2017 has issued the policy guidelines regarding “Signing of Fuel Supply Agreement (FSA) with Letter of Assurance (LoA) holders of Thermal Power Plants - Fading Away of the existing LoA-FSA Regime and Introduction of a New More Transparent Coal Allocation Policy for Power Sector, 2017 - SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India)” (“Policy”). Allocation of Linkages in the Power Sector is being governed as per the SHAKTI Policy.

 

Coal Handling Plant for Loading Coal into Wagon

Coal Handling Plant for
Loading Coal into Wagon

NON-REGULATED SECTOR LINKAGES

Ministry of Coal, Govt. of India vide letter no. 23011/51/2015-CPD(Pt-I) dated February 15, 2016 issued the Policy for auction of coal-linkages for the non-regulated sector consumers in different sub-sectors such as cement, sponge iron/ steel, aluminium and others (excluding fertilizer (urea) sector) including their CPPs, through a competitive bidding process. Auction of Linkages for Non-Regulated Sector consumers are being conducted by CIL as per the Policy.

The NRS Linkage Auction Policy stipulates that there will be no renewal of existing FSAs of non-regulated sectors [except FSAs of CPSEs and Fertiliser (Urea)] which mature in 2015-16 onwards, after completion of their agreement tenure. However, the existing FSAs with CPSEs are continued to be renewed on expiry. In case CPSEs require linkages over and above the existing linkages, they may participate in NRS Linkage Auctions.

 

Feeder Breaker in a circuit of coal handling plant

Feeder Breaker in a circuit
of Coal Handling Plant


SALE OF COAL THROUGH E-AUCTION

To bring more transparency in the system of distribution of coal and to get fair price for the product - Coal, as determined by the market forces on demand and supply, where any person / consumer / trader can participate, Ministry of Coal has introduced sale of coal through electronic auction from March / April 2005.

Usually, MCL conduct the following 3 types of e-Auction for coal dispatch in Rail as well as Road mode; 

(a)  Special Forward e-Auction for Power: All Power Houses including IPP can participate (excluding CPP)

(b)  Exclusive e-Auction for Non-Power: All non-power end user of Coal including CPP can participate

(c)  Spot e-Auction; All consumer as well as traders can participate

In order to attain the objective of Govt. of India for reducing dependence of the country on coal imports towards 'Aatma Nirbharta', Coal India Limited has introduced Special Spot e-Auction for Import Substitution in which all importers of coal can participate to meet their coal requirement from domestic sources.

The prospective buyers / bidders are to register themselves with MSTC / Metal Junction, the service providers of CIL on payment of such registration fee as prescribed as per their terms & conditions for participation in coal e-Auction.

The buyers / bidders are required to deposit applicable EMD as per the terms and conditions of the auction.

After fulfilment of both the conditions, the prospective buyers are allowed to participate in online e-Auction by giving a password no. etc. by the service provider to have accessibility for participation in e-Auction. After successful bidding the consumer have to deposit the coal value in MCL account to receive the Delivery Order.

(i) The EMD deposited will be returned to the unsuccessful bidders by the respective service provider.

(ii) For the successful bidders the proportionate EMD will be adjusted against the coal value.

(iii) EMD will be forfeited in two cases;

        a) If the successful bidder fails to deposit the coal value within the stipulated period and

        b) If the successful bidder fails to lift the coal due to its own fault within the validity period of lifting coal as                per the terms & conditions of auction.

After introduction of e-Auction, the valid linked non-core sector consumers can also participate in e-Auction where other buyers / traders will also participate.

MCL offers coal in e-Auction almost in every month to cater to the needs of the customers. The details of e-Auctions are hoisted in MCL website (www.mahanadicoal.in) as well as in the website of the service provider (i.e. MSTC & Metal Junction) from time to time.

 

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