Frequently Asked Questions
CIL Produces :
- Coking Coal.
- Semi coking coal.
- Non Coking Coal.
- Beneficiated coal.
- Cil Coke / LTC Coke.
- Coal Fines/ Coke Fines.
- Tar/ Heavy Oil/ Light Oil/ Soft Pitch.
Customer segments serviced by CIL are as under :
- Power( Power utilities including IPPs)
- Steel including Sponge Iron & Pig iron manufactures and other metallurgical industries who use coal/coke for their own end use
- Aluminium Ind
- Paper Ind
- Central PSUs for consumption and use (as distinguished from trading)
- Glass/ Ceramic/ Pottery
- Engineering/ Rolling Mills
- State nominated agency
- Traders, etc.
FSA stands for Fuel supply Agreement. As per new Coal Distribution Policy(NCDP) Coal supplies are governed by Legally enforceable agreements between the seller (coal companies) and the consumer under specific terms and conditions. Various model FSAs for different categories of consumer have been placed in the website.
LOA stands for Letter of Assurances. It is issued to new consumers on being approved by the appropriate authority, based on recommendation of a committee constituted Specific terms & conditions of the LOA to be complied with within a stipulated time period for being eligible to enter into FSA for commencing coal supply.
Customers can be classified into 3 types. Types of customers vis a vis procedure to be followed for purchase of coal is as under
|Nature of customer||Procedure of purchase of coal|
|Power Utilities including Independent Power Producers (IPPs) and Captive Power Plants ( CPPs), cement and sponge iron including Steel,||Supply of coal through legally enforceable Fuel Supply agreements (FSA). New consumer will have to approach existing Standing Linkage Committee(LT) under Ministry of Coal for recommendation for issue of Letter of Assurances(LOA) by Coal companies as per provision of NCDP (NEW COAL DISTRIBUTION POLICY) and recommendation of Administrative Ministry . LOA is issued on furnishing Commitment Guarantee(CG) followed by execution of FSA on fulfillment of LOA conditions in the stipulated period of time.|
|Fertilizer||Coal will be supplied by coal companies through FSA.|
|Defense||As per government order.|
|Customers belonging to sectors other than what has been mentioned above (requiring coal beyond 4200 MTPA)||Customers to get coal under FSA through Letter of Assurance (LOA) route as per laid down procedure.|
|Customers having requirement of coal less than and upto 4200 MTPA||Such consumers may buy coal from the state nominated agencies. Such nominated agencies get coal through FSA with the coal supplying companies.|
|Trader||Coal can be purchased only through Spot EAuction- Scheme|
The benefits are briefly stated as under :
- Total transparency in coal marketing.
- Equal treatment to all the categories of customers without any discrimination.
- Buyers getting coal of their choice in respect of source, grade, size/mode.
- Buyers can purchase coal from anywhere in the country.
- New consumers, snapped consumers and consumers seeking additional coal over & above their FSA quantity could buy coal under this scheme.
- Tendency of diverting coal to secondary market at a premium is greatly reduced, if not fully eliminated.
- No quota/linkage/sponsorship needed for purchase of coal.
- Option for depositing money for registration/EMD on-line.
A customer can get E Auction schedule from respective WEBSITES of Coal Companies or portal of MSTC and mJunction.
If requirement is less than 4200 tonne per annum, you can procure coal from agency nominated by your states at a price not exceeding 105% of base price at which coal was purchased by the agency from linked coal companies. Coal also can be procured from spot e auction with a minimum bidding quantity of 50 tonne.
New Coal Distribution Policy(NCDP) of Gov't of India specifies the policy for distribution of Coal. Depending upon the category of the consumer and requirement of Coal, the policy provides for appropriate procedure for obtaining Coal.
10% of annual production of CIL is marked for e-auction.
Any buyer can participate in spot e-auction and only actual consumer can participate in forward e-auction.
The procedure for participation in e-auction is specified in the scheme for spot e-auction and scheme for forward e-auction.
UHV stands for useful heat value of coal. which is calculated by the empirical formula as below :
UHV = 8900-138(ash%+Moisture%) in Kilo Calories/Kilogram.
In the case of coal having moisture less than 2 per cent and volatile content (VM)less than 19 per cent the useful heat value shall be the value arrived at as above reduced by 150 kilocalories per kilogram for each one percent reduction in volatile content(VM) below 19 percent and fraction pro-rata.
The Long Flame is a characteristic of coal which depends upon the volatile matter present in the coal. Range of Gross CV and dried moisture are two other factors which determine the long flame characteristics of coal. Following parameters are as laid down in IS 770-1964, general classification of coal(revised).
(on unit coal basis)
| Gross C.V.in
(on unit Coal )
| Air dried Moisture%
at 60% RH & 40®C(On
Mineral Free coal Basis)
| over 32
| 8060 to 8440
7500 to 8060
| 3 to 7
7 to 14