The task force constituted to rationalise coal sourcing was expected to submit its report by April, Parliament was informed today.0
"The task force is likely to submit its recommendations to the competent authority by 24th April, 2011," Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to Lok Sabha.
Coal Ministry had last year set up an inter-ministerial task force to rationalise coal sourcing so as to help key consumers in the power, steel and cement sectors optimise transportation costs.
Rationalising coal sources will help end-user companies procure coal from nearby coal-producing firms, rather than strictly complying with entities they have entered into supply agreements with.
Besides transportation costs, consuming firms would also be assured of continual supply if coal sourcing is rationalised, the ministry had said.
User companies spend a significant part of their operating expenditure on transportation.
Coal source rationalisation would also help user firms hedge against the shortage of railway rakes for movement of coal in the country, the ministry had said.
