Cos having pact with CIL have to send 30% of coal by road

All consumers of Mahanadi Coalfields Ltd (MCL), including power firms, who have inked fuel supply pacts with the PSU will have to transport 30% of the contracted quantity by road if it is within a limited distance.

"In a major decision taken by Mahanadi Coalfields Limited (a coal India arm), all consumers of Mahanadi Coalfields Limited who have a Fuel Supply agreement with the company, will have to transport 30% of the FSA (Fuel Supply Agreement) quantity by road if the destination point is within 50 km from the mines," according to an MCL spokesperson.

The move, the spokesperson said, would provide major employment opportunities to the land oustees not eligible for employment under the R&R Scheme who can now take up the coal transportation contracts.

This would also benefit the local coal transporters and other allied works with higher quantum of work, the spokesperson said.

"The scheme saw the light of the day due to active support from CIL and the Coal Ministry," he said.

Coal India is a holding company with seven wholly-owned coal producing subsidiaries, including MCL. State-owned Coal India has so far signed 162 fuel supply agreements (FSAs) with power plants.

The government had earlier directed the coal major to sign supply pacts with power projects of 78,000 mw capacity. As many as 172 FSAs are to be signed in this regard.

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The government had set the deadline of August 31, 2013 for signing of FSAs, which could not be met. The second deadline was set for September, last year.